Old Navy Launched New Activewear Shop-in-Shops

The retailer has introduced dedicated spaces for its new sub-brand in 42 locations across the United States.

Updated on Sept. 18, 2026 in Retail

Isometric editorial illustration of folded athletic clothing on a minimalist retail pedestal, reflecting a new store design initiative. — Old Navy has launched 42 new shop-in-shop locations across the United States to showcase its consolidated Old Navy Sport activewear brand. AI Illustration. Upload story photo >

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Old Navy has opened dedicated shop-in-shops at 42 store locations to showcase its newly created sub-brand, Old Navy Sport. This move follows the consolidation of the retailer's activewear selections into a unified brand identity.

Why it matters

The introduction of Old Navy Sport comes as the company seeks to leverage a stronger brand identity to differentiate itself from market rivals. The shift follows a fiscal quarter where the new activewear line provided a necessary boost to sales results.

Old Navy currently holds fifth place in the U.S. activewear market across its fleet of over 1,100 locations. The company is now installing dedicated, immersive shop-in-shops in 42 of those stores to highlight its rebranded athletic category.

The players

Old Navy

This major apparel retailer operates over 1,100 locations across the United States and is a subsidiary of Gap Inc.

Gap Inc

This global clothing and accessories retail company manages a portfolio of brands including Old Navy, Gap, and Athleta.

Athleta

This athletic apparel brand specializing in fitness clothing for women has been owned by Gap Inc since 2008.

The details

The retailer is focusing its marketing efforts on its core pillars of denim, children's products, and the new activewear category. These shop-in-shops are intended to create a distinct, immersive environment for customers browsing the Old Navy Sport sub-brand.

Gap Inc acquired Athleta in 2008.
Old Navy experienced scattered store closures during the summer of 2026.
Old Navy officially launched the Old Navy Sport sub-brand in September 2026.

Market Landscape

This strategy follows the pattern established by the 2008 Athleta acquisition, marking a continued effort to solidify the company's foothold in the competitive activewear sector. By centralizing its athletic gear under Old Navy Sport, the company is attempting to improve its positioning against the four brands currently outranking it in the U.S. market.

Shoppers can expect to see increased marketing and dedicated displays for denim, activewear, and children's categories in the coming weeks. These changes aim to simplify the shopping experience by organizing the store layout around specific brand segments.

The takeaway

Retailers often use shop-in-shops to signal a pivot in brand strategy without requiring a full store renovation. Consumers can monitor these sections to identify if the company's focus on these specific categories leads to a broader range of styles or improved inventory availability.