Old Navy founded in 1994, plans to open more stores. Around 800 stores will be further opened by the company, said the company on Thursday. The stores will be located in the under-served market where competition is less, says Old Navy.
Now that the company is splitting from The Gap, its parent company, it is going on an expansion spree. In spite of competition from online shopping, Old Navy intends to develop its brick-and-mortar stores. However, Gap shops are closing down, as 230 Gap stores are planned to be shuttered.
The Gap will be spinning off Old Navy by 2020, into a public company. However, its flagship brand will be held on. Intermix and Banana Republic will continue along with Hill City and Athleta.
CEO Sonia Syngal of Old Navy states that the company intends to double the fleet to own 2,000 stores in the U.S. Earlier it had 1,139 stores in North America by the end of the financial year 2018.
According to statistical figures from Coresight Research, many retail stores are facing closures. About 8,200 stores have been closed for this year. Last year in 2018, around 5,589 stores had closed. This is expected to get even worse and around 12,000 stores are expected to close by this year-end.
Retail stores are facing tough times with competition from online stores. Foot traffic to brick-and-mortar stores is going down as customers prefer to choose the more trendy products available online at lower costs. Earlier, Gymboree the clothing store for children had filed for bankruptcy.
Old Navy has been doing well on its own. It has been able to raise $8 billion through brisk sales. Soon, it expects sales to touch $10 billion, says Syngal.
For the latest fashions at convenient prices, Old Navy is known to provide clothes for the whole family. The brand has been able to capture customers through low prices and trendy clothes.