Old Navy has long-term plans to nearly double its store count, from 1,140 to approximately 2,000, as part of its forthcoming spinoff from Gap Inc. The expansion is part of the retailer’s attempts to reach $10 billion in sales.
The news comes on the heels of Gap announcing that it will shut down 230 of its 1,200+ namesake stores worldwide over the next two years. Old Navy plans to open approximately 75 stores a year and to turn its focus away from mall locations.
The ambitious expansion plan follows the March 2019 news that Gap Inc. would split into two separate, independent publicly traded companies, with Old Navy operating on its own and Gap, Athleta, Banana Republic, Intermix and Hill City together under the yet-to-be-named banner “NewCo.”
Old Navy has clearly been the strongest retail branch of Gap Inc.; in the last fiscal year, the retailer generated $8 billion in annual revenue compared to the $9 billion in annual revenue from the other retailers combined. In 2018, Old Navy was Gap Inc.’s leading brand, contributing 47% of the parent company’s sales.