Old Navy plans to open 75 stores a year. The goal is to increase the count from around 1100 stores, most of which are in the US, to 2000. The openings will happen predominantly in underserved small markets. Over the past few years, Old Navy has opened about 35 stores in smaller markets. About three-quarters of Old Navy stores are not in malls.
Old Navy belongs to Gap and serves a core audience of value-seeking families. Children’s clothing is often an entry point for the brand. It gets mothers to come in and shop repeatedly as their children grow. Those mothers can also shop for themselves and everyone else in their families while they’re there. The brand has focused on increasing its size range, too, making it a destination for the many American women who go underserved by the narrow ranges at other labels. And it has built an infrastructure that quickly feeds stores with what customers want rather than serving the same assortment to everyone.
This year has been brutal so far for America’s brick-and-mortar retailers. There were more than 7000 store closures in the first half of the year. The majority of closings are happening in clothing and footwear, mainly due to bankruptcies and companies downsizing their store footprints.
