Old Navy Adding 60 New Stores, Remodeling 150 More This Year
Old Navy has emerged as one of the stronger brands in what is turning into a bloody 2018 for retail. Gap CEO Art Peck announced plans to open 60 more Old Navy stores this year, CNBC reports. The move is part of a revamped growth strategy announced late last year calling for Gap to close 200 Gap and Banana Republic stores by 2020 and focus more on Old Navy and the company's athleisure brand, Athleta.
Old Navy is Gap's strongest-performing brand. Same-store sales increased 9% in Q4. Old Navy has remodeled several of its stores and embraced omnichannel marketing, allowing the retailer to keep track of loyalty points and customer reviews while customers are taking advantage of "buy online, pick up in store" in several locations.
Old Navy real estate is another contributing factor. Peck said stores tend to be in open-air shopping centers and high-density, street-level retail, compared to the outdated malls that house many Gap and Banana Republic stores.
Gap expects to open a total of 270 new Old Navy and Athleta locations by 2020. Peck said the company will remodel another 150 Old Navy locations this year.
