Gap Inc's Old Navy brand plans to double its store count in North America as the apparel retailer readies itself to split from the parent company next year. The brand, which offers more affordable clothing and accessories, plans to open 860 stores in North America and focus on opening outlets in smaller markets and off-mall locations.
Old Navy, which recorded net sales of about $8 billion in 2018 and ended the year with 1,140 locations, said plans to reach more than $10 billion in annual sales by opening new stores. The brand’s plans to open these stores is a result of Gap and other brick-and-mortar players shutting underperforming locations bowing to pressure from online sellers, fast-fashion retailers and ever-changing consumer trends.
The brand also plans to focus on the denim category besides improving its margins. It expects $400 million to $450 million in one-time separation expenses and $300 million to $350 million in capital-related costs between 2019 and 2021.