Gap's Athleta Looks a Lot Like Lululemon

Last month, Lululemon Athletica opened a store in Durham, N.C. Three weeks later, Athleta, Gap’s answer to Lululemon, opened its own shop in the same mall. The pattern—Lululemon store opens, Athleta pops up nearby—is happening across the U.S. as Gap mounts the most potent threat so far to the Vancouver-based yoga powerhouse.

Gap’s Athleta is also borrowing from its competitor’s playbook. Like Lululemon, Athleta is hooking up with local yoga instructors and sponsoring classes such as Mommy & Me Yoga. Like Lululemon, Athleta trains staff to make garment recommendations tailored to customers’ pursuits—a half-marathon, say, or paddle boarding. And the upstart chain is often undercutting its rival on price. Cropped padded cycling pants sell for $88 online at Lululemon, while similar shorts cost $64 on Athleta’s website. Yoga pants are often $15 more at Lululemon.