We visited Old Navy and saw why it's Gap's biggest asset

Business Insider/Jessica TylerOld Navy is Gap’s biggest strength.

  • Old Navy is spearheading Gap Inc.’s growth.
  • Gap Inc. saw 2% sales growth overall in the most recent fiscal quarter, with the Old Navy brand reporting comparable sales were up 5 % this quarter.
  • We visited an Old Navy store to see why it’s doing so well.

Old Navy is spearheading Gap Inc.’s growth.

Gap Inc., parent company of Gap, Banana Republic, Old Navy, and Athleta, saw 2% sales growth overall in the most recent fiscal quarter, with growth spearheaded by Old Navy and Athleta. It was the seventh consecutive quarter of positive comparable sales growth for the company.

Old Navy is the most successful of the Gap brands, with comparable sales up 5% this quarter. So far in 2018, Old Navy has opened 28 stores and completed 85 remodels. CEO Art Peck announced in an earnings call on Thursday that Old Navy will be launching a plus size collection, which was previously only available online and in select stores.

Meanwhile, Gap’s comparable sales slipped 5%, in large part because it offers a lot of what Old Navy does for a higher price. Old Navy is able to prevail over Gap and the other Gap Inc. brands, in part, because it sells similar styles to Gap at a lower price point. When we visited Gap recently, we noticed a lot of sale signs, a small variety of products, and generally high prices.

We recently visited an Old Navy, and saw why it’s doing so well.


We visited the Old Navy in Chelsea, NYC.

Business Insider/Jessica Tyler

In the entryway was a 75% off sign.

Business Insider/Jessica Tyler

Denim was the first thing in the store. Everything was 30%.

Business Insider/Jessica Tyler

Denim was also lining a wall to the right of the entrance. There was more to choose from then at Gap, and it was less expensive. Each pair cost $US39 before the discount.

Business Insider/Jessica Tyler

Old Navy had a huge variety of styles throughout the store, as it was clearing out summer inventory to make way for fall.

Business Insider/Jessica Tyler

Most of the prices were pretty low — a striped t-shirt like this cost over $US30 at Old Navy’s sister store Gap, but only $US15 at Old Navy, plus it was 50% off at Old Navy. The quality wasn’t much different than Gap.

Business Insider/Jessica Tyler

Old Navy’s women’s department was huge, and had a lot of variety in everything from t-shirts to business casual clothing.

Business Insider/Jessica Tyler

There was also a lot of workout gear…

Business Insider/Jessica Tyler

…and a ton of inexpensive accessories.

Business Insider/Jessica Tyler

Old Navy had a lot of accessories, shoes, belts, and small products like hand lotion and face masks. Everything was under $US20, with the exception of some shoes.

Business Insider/Jessica Tyler

The lower level was divided between menswear, which had similar prices and deals to the women’s department…

Business Insider/Jessica Tyler

…and a huge clearance section that had a little bit of everything for under $US10. Almost every style in the store was in the clearance section as well.

Business Insider/Jessica Tyler

Old Navy carries everything — men’s, women’s, children’s, accessories, and soon plus size — that Gap does, at the same quality, and for a lower price. After visiting the store it’s clear why the brand is the main reason for Gap Inc.’s continued growth.

Business Insider/Jessica Tyler

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