New Look Drives Comp Sales at Old Navy
Frankly speaking, it’s expected that a store that undergoes a remodel will see increased sales. After all, if sales do not go up, what’s the point of the remodel?
Fortunately for Gap Inc., the company can report that remodels of Old Navy stores (300 and counting) have resulted in higher comparable unit sales.
"With almost a third of our fleet remodeled, we are well on our way to completing our vision of transforming Old Navy," said Tom Wyatt, president of Old Navy, in a press release. "These store designs more boldly reflect our personality; more clearly delineate our product categories and consistently outperform the rest of our fleet in sales, with higher customer experience scores in each new community driving her to spend $1-$2 extra per store visit."
The remodeled stores feature a rack track layout with wider aisles and lower fixtures to make it easier to shop the store. Dressing rooms have been moved from the back to the middle of the store and product categories are clearly delineated. Stores feature an interactive play area for kids to free up young moms to shop.
Old Navy has also remodeled its checkout area to, according to a Bloomberg News report, "stir nostalgia for the chain’s target customers, who grew up in the 1980s." Items at the checkout include freeze-dried ice cream, Mad Libs books, piggy banks, super hero lunch boxes and sodas from Jones Soda.
Edward Yruma, a retail analyst for KeyBanc Capital Markets, told Bloomberg, the remodels "Bring some of the excitement back to the store. The old concept was north of 14 years old and was looking very tired."
- Old Navy to Celebrate its 300th Store Redesign Focused on Improving Customer Shopping Experience – Gap Inc.
- Old Navy Makeover Replaces ‘Dungeons’ With 1980s Nostalgia to Boost Sales – Bloomberg News
Discussion Questions: How important are remodels to improving top line performance at established retailers? Is Old Navy on the right track with its stores remodels?