Old Navy is ready to set sail on its own
Old Navy is coming off a tough second quarter during which its same-store sales fell more than five percent — its worst showing in three years — but that doesn’t mean the value-priced clothing chain is losing confidence after its official spinoff from Gap Inc. In fact, Old Navy has big plans to expand from its current count of 1,140 stores to 2,000 after it becomes a standalone company.
The chain announced its growth plans, which did not include a timeline for the new store openings, at an investor conference, presumably with the goal of attracting interest in Old Navy’s stock following its split from Gap.
The decision to separate Old Navy from its parent company was announced earlier this year. The chain has been a bright spot for Gap in recent years with sales growing to 47 percent of the specialty clothing retail store operator’s total by the end of 2018.
Old Navy’s expansion plans are impressive, even given its history of success. The chain, which averaged a little more than 70 new store openings a year since 2016, is looking to ramp up its physical locations by moving into smaller markets where it does currently have a significant presence. In the process, Old Navy expects to grow its annual revenues from its current level of around $7.8 billion to about $10 billion a year.
Sonia Syngal, president and CEO of Old Navy, will continue to lead the retailer following the spinoff.
- Old Navy plans to open 800 new stores – CNN
- Old Navy plans to expand to about 2,000 stores — nearly doubling its existing total — as it spins off from Gap – Business Insider
- Old Navy plans to open 800 new stores – The Wall Street Journal
- Gap same-store sales disappoint as Old Navy struggles – Reuters/Yahoo Finance
- What will going separate ways mean for Gap and Old Navy? – RetailWire