Not only is Old Navy ditching Gap, but it is also planning to get a lot bigger.

Continue Reading Below

Ticker Security Last Change %Chg
GPS GAP 19.29 +0.11 +0.57%

That’s essentially what the affordable clothing company announced will be its future as it gets spun-off from parent Gap in 2020.

Old Navy intends to double its stores to reach 2,000, all in North America and in underserved small markets, according to an investor presentation.  The retailer is hoping its apparel brand, which ranks second to Target, will be able to attract more customers.

The strategy of opening in niche markets is gaining momentum industrywide. For example, Target and Nordstrom’s are both using similar tactics to attract shoppers.

Ticker Security Last Change %Chg
TGT TARGET CORP. 108.26 -0.68 -0.62%
JWN NORDSTROM 35.06 +0.44 +1.27%

MORE ON FOXBUSINESS.COM

Old Navy projects a potential $2 billion-plus increase in annual sales.

As Old Navy gets bigger, other retailers are getting smaller. Just this week GameStop announced it was closing up to 200 stores and reports are swirling around teen retailer Forever 21 and a possible looming bankruptcy, although the retailer denied those reports to FOX Business.

CLICK HERE TO READ MORE ON FOX BUSINESS

LEAVE A REPLY

Please enter your comment!
Please enter your name here