It appears as though management is not tuned in to the fact that the country has been overstored. Are we overstored in every type of store but Old Navy? Doubtful. Eight hundred is not a trivial number of new stores.

When I first heard this news, I was worried for the chain. The retail industry is volatile right now, and Old Navy is not immune to this volatility.

Now that I’ve had time to learn more about the expansion and how it is primarily international-focused, I’m worried for different reasons. One of the countries where Old Navy is considering rapid expansion is China. US brands resonate in China, but there is so much uncertainty — this is not the time for massive expansion in China.

800 new stores with competitor Forever 21 rumored to be going bankrupt in the next week? Something tells me this is not based on reality as much as hype.

I think Old Navy needs to be cautious about its growth plan. Companies love getting their stockholders excited with strategies for increasing sales whether it be by opening more stores or other programs, but today with the brick & mortar world a bit unstable, I’d be careful about how many stores they open, how quickly and most importantly where. Fashion changes rapidly, and usually, the apparel chain that is hot today will be a memory in a few years. It’s hard to stay on top of the next trend and to know what fashion style and look will be the next big thing and what will not. Breaking away from the Gap was wise because Old Navy was carrying all the other divisions. I predict within a few years, The Gap and its other brands will consolidate to one brand, and if unsuccessful, go out of business. There is too much choice, and too much sameness amongst many apparel chains today. The consumer is only loyal to a few if any at all. Once we… Read more »

Old Navy is a fairly solid concept, but I am not sure the U.S. needs so many more Old Navy shops. This suggests the complete absence of any real underlying strategy; it’s just a case of “add more capacity and more people will come.” It really doesn’t work like that! I suspect these overly ambitious numbers will be pared back over time.

It’s worrying. I mean, good God, did they not learn the lesson of over-expansion from their former daddy/mommy?

I don’t think all the speeches about the future of Old Navy and the Gap survive a real world reality check. One of the big lessons of the past couple years is that the USA is over mall’d and over store’d. And here is an already big business talking about doubling. And doubling against competition like TJMaxx, Ross, Burlington — and — the emergence of Primark. It doesn’t sound plausible. I was in a mall yesterday (Danbury, CT) where Primark and Old Navy are literally next door neighbors. Both stores looked good, but Old Navy had crickets chirping. Primark was genuinely busy. Wish I could attach pictures. I should have counted heads or people lined up at registers. And what if JCP gets their act together? And what about Macy’s and Backstage? And what about the emergence of rental and recycle businesses? It’s not like the opening price point segment of the market is hurting for options and the door for growth is wide open. None of this makes any sense to me. Let’s hear… Read more »

Really? Oh no!

It certainly is worrisome that despite reality, a sense of confidence prevails. That would apply to anyone, let alone a business in a category that’s suffering from disinterest and declining footfalls on a consistent basis. Another burning question about this split is; what happens to Gap? Feels like the rats are jumping off the ship a little bit, doesn’t it?

Old Navy. Basics 50 percent off. Clunky execution of vast racks of key basics. Meet the Old Navy customer. Get the popcorn, 800 new stores will be an interesting show to watch.