John Boccuzzi, Jr.

Old Navy Sailing Along

February 26, 2010

FROM RETAILWIRE:
Gap Inc.'s fourth quarter numbers look pretty good and that, in large part, is due to the increased contribution the company is getting from its Old Navy apparel chain. What do you think are the keys to Old Navy's recent success?      [more...]

Gap's Old Navy chain is benefiting from the same thing Food/Drug and Mass Retailers Private Brands have been benefiting from over the last 18 months. A slow economy drives consumers to change shopping behaviors. Old Navy is what I would consider Gap's private label under its own banner.

As Richard mentioned in his comments, they have gotten back to what they do best. Focus on value price, strong promotions, and unique advertising.

Consumers will keep some of the habits they picked up over the last 18 months and Old Navy will benefit for the next several years.