We visited Old Navy and saw why it's Gap's biggest asset (GPS)
- Old Navy is spearheading Gap Inc.'s growth.
- Gap Inc. saw flat sales in the most recent fiscal quarter, with the Old Navy brand reporting comparable sales were up 4%.
- 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, reported on Tuesday that sales were flat overall in the most recent fiscal quarter, with growth spearheaded by Old Navy and Athleta.
Old Navy is the most successful of the Gap brands, reporting that comparable sales were up 4% this quarter. So far in 2018, Old Navy has opened 24 stores. CEO Art Peck announced in an earnings call in August 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 7% in the third quarter. 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 the Chelsea neighborhood of New York City.
In the entryway was a 75% off sign.
Denim was the first thing in the store. Everything was 30% off.
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