The News: Old Navy is set to launch a new subbrand and freestanding retail format called Old Navy Sport later this year.
The Opportunity: The move represents a diversification play targeting a "cleaner gap" in the accessible and budget-friendly portion of the athleisure market.
The Challenges: Experts question if branding it as "Old Navy" will gain enough credibility with consumers, drawing parallels to McDonald's "CosMc’s" experiment.
Key Question: Will this new offering resonate with consumers, or is the branding approach a significant risk?
