Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (2024)

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Most popular Old Navy was founded in 1994 in Colmar, California, with the aim to bring cheaper fashion to the masses. Old Navy was named after a café and bar in Paris located on Boulevard Saint-Germain, which has since closed. It originally started as a Gap Warehouse, which sold overstock and off-season Gap products at a discount before former CEO Mickey Drexler opted to create a new brand. Drexler was partially inspired due to pressure from competitor Dayton Hudson Corp. — then-owner of Target and Mervyn's — which had formerly announced plans to create a discount chain that functioned as a cheaper version of Gap. Within just a year, Old Navy had 59 stores around the country. By 1997, the brand became the first retailer to hit $1 billion in annual sales in less than four years. Old Navy stores were designed to be significantly larger than Gap stores, in order to provide more of a value-store feel. Building upon Old Navy's early success, the company looked to partner with celebrities and build out advertising campaigns. Before long, the Old Navy name was everywhere. Also in 1997, Old Navy began airing the first of its traditionally quirky television commercials, starring fashion editor Carrie Donovan. These would set the tone for campaigns over the decades. In the coming years, Old Navy would feature many popular stars of the time, including twins Tia and Tamera Mowry in a 1999 performance fleece commercial. In 2000, Old Navy hit its first bump in the road. The company reported declining sales as a result of a strategy that neglected its over-30 shoppers. Despite the troubles, Old Navy continued to eye expansion. In 2001, the brand opened 12 stores in Canada. In 2004, Old Navy celebrated a decade in business. By then, Old Navy had become known as a one-stop shop for the entire family. In the mid-2000s, Old Navy continued to raise its profile with the help of celebrities. Stars including Betty White came out en masse to a series of high-profile events helping the brand to elevate its image. Pete Wentz and Ashlee Simpson did, too ... ... as did Jessica Biel ... ... and Arianna Huffington, among others. Old Navy also teamed with notables like Mark Wahlberg on charity events like a 2006 effort with the Boys & Girls Club. In 2005, Old Navy began offering plus sizes, expanding its customer demographic. Over the course of the early 2000s, Old Navy became the go-to place for items like multi-colored bargain flip flops ... ... as well as fun fuzzy socks. Old Navy has also long been beloved for its Fourth of July apparel. Old Navy also increased its visibility by sponsoring major cultural events like the American Music Awards. Old Navy hit another slump as a result of the 2009 financial crisis and recession, joining many other retailers in a period of sales declines. In 2012, Old Navy appointed Stefan Larsson as president. He has widely been credited with revitalizing the brand. That same year, Old Navy opened its first store in Japan, marking the beginning of a major expansion in Asia. Old Navy was once again at its peak, leading the way for Gap as its most profitable and successful brand. In February 2019, Gap announced plans to spin off Old Navy into an independent company. However, in the subsequent months, Old Navy began to join its sister brands in showing signs of struggle. On January 16, Gap announced it would halt its plans to spin off Old Navy, citing "cost and complexity." Though Old Navy won't operate as an autonomous company in the future, it still holds an important place in the hearts of American shoppers. FAQs

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Bethany Biron

2020-01-23T18:50:44Z

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (1)

Though Gap reversed its decision to spin off its Old Navy brand last week, the brand remains beloved among Americans, outfitting families for nearly three decades.
We took a look at the rise of Old Navy, starting with its founding as a low-cost alternative to Gap and the quirky celebrity-filled ads that propelled it to popularity.
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Since its founding as a low-cost alternative to Gap in 1994, Old Navy has evolved into a beloved American brand.

The company skyrocketed in popularity in the late 1990s and 2000s, becoming synonymous with its quirky ad campaigns and low-cost styles for the entire family. From its multi-colored flip flops and its Fourth of July screen-printed T-shirts, Old Navy has solidified itself as a go-to retailer across consumer demographics.

For several years, Old Navy has been Gap's golden child and top performing brand, so much so that Gap announced plans to spin off the brand into an autonomous company in 2019. However, last week Gap officials announced that it was halting the split, citing "cost and complexity" as the reason for the reversal.

Still, Old Navy remains an integral part of the American retail industry. We took a look at its rise over the years.

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Old Navy was founded in 1994 in Colmar, California, with the aim to bring cheaper fashion to the masses.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (5)

"We didn't take ourselves too seriously, and we broke the industry's rules," the Gap Inc. corporate page says of its Old Navy brand. "We said fashion didn't have to be just for rich people — it could be for everyone."

Old Navy was named after a café and bar in Paris located on Boulevard Saint-Germain, which has since closed.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (6)

Source: Gap Inc.

It originally started as a Gap Warehouse, which sold overstock and off-season Gap products at a discount before former CEO Mickey Drexler opted to create a new brand.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (7)

Source: Funding Universe

Drexler was partially inspired due to pressure from competitor Dayton Hudson Corp. — then-owner of Target and Mervyn's — which had formerly announced plans to create a discount chain that functioned as a cheaper version of Gap.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (8)

Source: Funding Universe

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Within just a year, Old Navy had 59 stores around the country. By 1997, the brand became the first retailer to hit $1 billion in annual sales in less than four years.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (9)

Source: Gap Inc.

Old Navy stores were designed to be significantly larger than Gap stores, in order to provide more of a value-store feel.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (10)

In its early days, Old Navy stores were designed to be twice as large as Gap stores, and they had an industrial aesthetic.

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Building upon Old Navy's early success, the company looked to partner with celebrities and build out advertising campaigns.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (11)

Before long, the Old Navy name was everywhere.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (12)

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Also in 1997, Old Navy began airing the first of its traditionally quirky television commercials, starring fashion editor Carrie Donovan. These would set the tone for campaigns over the decades.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (13)

Source: The New York Times

In the coming years, Old Navy would feature many popular stars of the time, including twins Tia and Tamera Mowry in a 1999 performance fleece commercial.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (14)

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In 2000, Old Navy hit its first bump in the road. The company reported declining sales as a result of a strategy that neglected its over-30 shoppers.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (15)

Despite the troubles, Old Navy continued to eye expansion. In 2001, the brand opened 12 stores in Canada.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (16)

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In 2004, Old Navy celebrated a decade in business.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (17)

By then, Old Navy had become known as a one-stop shop for the entire family.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (18)

Advertisem*nt

In the mid-2000s, Old Navy continued to raise its profile with the help of celebrities. Stars including Betty White came out en masse to a series of high-profile events helping the brand to elevate its image.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (19)

Pete Wentz and Ashlee Simpson did, too ...

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (20)

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... as did Jessica Biel ...

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (21)

... and Arianna Huffington, among others.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (22)

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Old Navy also teamed with notables like Mark Wahlberg on charity events like a 2006 effort with the Boys & Girls Club.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (23)

In 2005, Old Navy began offering plus sizes, expanding its customer demographic.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (24)

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Over the course of the early 2000s, Old Navy became the go-to place for items like multi-colored bargain flip flops ...

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (25)

... as well as fun fuzzy socks.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (26)

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Old Navy has also long been beloved for its Fourth of July apparel.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (27)

Old Navy also increased its visibility by sponsoring major cultural events like the American Music Awards.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (28)

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Old Navy hit another slump as a result of the 2009 financial crisis and recession, joining many other retailers in a period of sales declines.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (29)

Source: CNN Business

In 2012, Old Navy appointed Stefan Larsson as president. He has widely been credited with revitalizing the brand.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (30)

Larsson used his background at H&M to bring in more fashionable styles similar to the fast-fashion model.

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That same year, Old Navy opened its first store in Japan, marking the beginning of a major expansion in Asia.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (31)

Old Navy was once again at its peak, leading the way for Gap as its most profitable and successful brand.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (32)

Advertisem*nt

In February 2019, Gap announced plans to spin off Old Navy into an independent company.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (33)

Source: Business Insider

However, in the subsequent months, Old Navy began to join its sister brands in showing signs of struggle.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (34)

Advertisem*nt

On January 16, Gap announced it would halt its plans to spin off Old Navy, citing "cost and complexity."

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (35)

Source: Business Insider

Though Old Navy won't operate as an autonomous company in the future, it still holds an important place in the hearts of American shoppers.

Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse. (36)

Source: Business Insider

FAQs

What was the Old Navy originally called? ›

On March 11, 1994, Gap Warehouse changed its name to Old Navy Clothing Co. to establish a separate image from its parent company Gap Inc.

Get More Info Here ›

What happened to the Old Navy? ›

On February 28, 2019, Gap Inc., announced that Old Navy and Gap Inc. would split into two companies, making Old Navy an independent company from Gap Inc. The move was designed to enable the consolidation of the company's older brands, like GAP and Banana, with its newer Athleta and Hill City.

Learn More ›

What does "old navy" stand for? ›

Values. At Old Navy, we're on a mission to ensure the world runs right by creating a better tomorrow for future generations through our Imagine Mission's three pillars: inclusivity, opportunity and sustainability.

Who manufactures Old Navy clothes? ›

Where Does Old Navy Make Its Clothes? Old Navy manufactures its clothes in countries including China, Bangladesh, Vietnam, Indonesia, India, and Sri Lanka. You can find a full list of the countries The Gap, Old Navy's parent company, sources its clothes from here.

Explore More ›

Why did Gap fail? ›

“The Gap's failure is all about its lack of leadership,” said Mark Cohen, the director of retail studies at Columbia University's business school. “They had a brilliant period of growth and popularity, which they frittered away.”

Read The Full Story ›

Why is Gap called Gap? ›

The Gap originally targeted the younger generation when it opened, with its name referring to the generation gap of the time. It originally sold everything that Levi Strauss & Co made in every style, size, and color, and organized the stock by size. The Gap was the first of many shops that carried only Levi's.

Learn More Now ›

Who is Gap owned by? ›

The Fisher family's involvement in Gap Inc. is substantial, with significant ownership stakes held by various family members. Specifically, William Sydney Fisher holds approximately 26.07% of the company, John J. Fisher owns around 24.58%, Robert J. Fisher possesses about 18.16%, and Doris F.

Read The Full Story ›

How is the Old Navy doing financially? ›

Here's a closer look at each brand's performance during the fourth quarter: Old Navy: Sales were up 6% to $2.29 billion while comparable sales were up 2%, ahead of estimates of up 1%, according to StreetAccount.

Know More ›

Is Gap Inc. struggling? ›

The move comes as the storied brand struggles to boost sales and reduce overhead expenses. The retailer eliminated about 1,800 positions in April 2023 in addition to the jobs it cut in September 2022. Gap's online sales dropped 7.2% in 2022, according to Digital Commerce 360's 2023 Top 1000 data.

Show Me More ›

Do Old Navy employees get a discount? ›

Merchandise Discount

We offer 50% off regular-priced merchandise at Old Navy, Gap, Banana Republic, and Athleta, and 30% off at Outlet, for all employees and their spouses or domestic partners.

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What is tall at Old Navy? ›

Old Navy has produced Fashion Nirvana! Old Navy Tall line is made specifically for women over 5'10”.

Find Out More ›

What are Old Navy sister brands? ›

Gap Inc. is a leading international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brand names.

Discover More ›

What is the oldest clothing manufacturer in the US? ›

Brooks Brothers is an American high-end luxury fashion company founded in 1818, the oldest apparel brand in continuous operation in the United States. Originally a family business, Brooks Brothers produces clothing for men, women and children, as well as home furnishings.

Keep Reading ›

What is the Old Navy known for? ›

From day one, Old Navy was a revolution. We were something the world had never seen—fabulous, affordable fashion for everyone. We opened our first store in 1994 and were the fastest retailer to reach $1 billion in sales within four years. Today, we're one of the largest apparel brands in the world.

What was the U.S. Navy originally called? ›

On 13 October 1775, the Continental Congress authorized the purchase of two vessels to be armed for a cruise against British merchantmen; this resolution created the Continental Navy and is considered the first establishment of the U.S. Navy.