- After spearheading Gap Inc.’s growth, Old Navy is splitting off from its parent company.
- Old Navy sales increased by 3% in 2018, while sales of the Gap brand dropped 5% globally in the same period.
- We visited an Old Navy store to see why it’s doing so well.
Old Navy has been spearheading Gap Inc.’s growth. Now, the brand is splitting off.
Read more:Old Navy splits off from Gap
Old Navy has in recent times been the most successful of the Gap brands. Globally, Old Navy sales increased by 3% in 2019, the company reported on Thursday. Sales of the Gap brand dropped 5% globally in the same period.
Old Navy has been 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 in 2018, we noticed a lot of sale signs, a small variety of products, and generally high prices.
We visited an Old Navy in late 2018, and saw why the chain has been the most successful of the Gap Inc brands:
We visited the Old Navy in the Chelsea neighbourhood of New York City.
In the entryway was a 75% off sign.
Denim was the first thing in the store. Everything was 30% off.
Denim was also lining a wall to the right of the entrance. There was more to choose from than at Gap, and it was less expensive. Each pair cost $US39 before the discount.
Old Navy had a huge variety of styles throughout the store, as it was clearing out summer inventory to make way for fall.
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 at Gap.
Old Navy’s women’s department was huge, and it had a lot of variety in everything from t-shirts to business casual clothing.
There was also a lot of workout gear …
… and a ton of inexpensive accessories.
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.
The lower level was divided between menswear, which had similar prices and deals to the women’s department …
… 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.
Old Navy carries everything — men’s, women’s, children’s, accessories — 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 area of growth for Gap.
Jessica Tyler contributed to an earlier version of this story.
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