SDCC 2019

Gap & Old Navy Going Separate Ways!

Gap Inc. just announced that they are planning to separate into two independent publicly traded companies by 2020: (1) Old Navy, as a standalone, and (2) a yet-to-be-named company (currently NewCo), which will consist of the iconic Gap brandAthletaBanana RepublicIntermix, and newly-launched Hill City.
Old Navy Girl Jeans
Each brand has been going in separate ways over the years. The separation will allow each company to focus on its unique business needs. Old Navy, one of the fastest growing apparel brands in the U.S., has been successful in recent years, with a 3% increase in sales at stores in 2018. Gap’s sales, however, fell 5% last year.
GAP store closing sign
As part of the restructuring process, the company plans to close approximately 230 Gap specialty stores over the next two years, which includes mall-based stores that have seen declining traffic over the years. However, they plan to open more Old Navy stores, as well as a few Athleta locations under the NewCo brand.