Old Navy has been Gap’s biggest strength. Business Insider/Jessica Tyler
Old Navy has been spearheading Gap Inc.’s growth. Now, the brand is splitting off.
On Thursday, Gap Inc announced that it would be splitting the retail company into two publicly traded companies — Old Navy and a yet-to-be-named company that will consist of the Gap brand, Athleta, Banana Republic, Intermix and Hill City.
Read more: Old Navy splits off from Gap
Old Navy has in recent times been the most successful of the Gap brands. Globally, Old Navy sales increased by 3% in 2019, the company reported on Thursday. Sales of the Gap brand dropped 5% globally in the same period.
Old Navy has been able to prevail over Gap and the other Gap Inc. brands, in part, because it sells similar styles to Gap at a lower price point. When we visited Gap in 2018, we noticed a lot of sale signs, a small variety of products, and generally high prices.
We visited an Old Navy in late 2018, and saw why the chain has been the most successful of the Gap Inc brands: