March 21, 2025
Image Courtesy of Gap Inc.
Should Old Navy Be Selling Special Occasion Dresses?
Taking on the fast-fashion chains, Old Navy has quietly introduced a range of special occasion dresses with prices ranging from $24.99 to $64.99.
“For parties, weddings, prom — these dresses love an RSVP,” reads the marketing copy for the budget apparel chain’s microsite, “The Occasion by Old Navy.” The site features dress options for six occasions: wedding guest, party and date night, Easter, wear to work, bridesmaid, and prom. No formal wedding dresses are available.
The launch comes as celebrity fashion designer Zac Posen in February 2024 was appointed EVP and creative director of Gap Inc., Old Navy’s parent company, and chief creative officer of Old Navy with a focus on reviving Old Navy’s fashion cachet. Old Navy was seen as “cool” soon after it first launched aggressively in the early ‘90s, and last year the brand brought back many of its hot styles from that era, including baggy fleece pullovers, denim cargo pants, striped tracksuits, and bucket hats.
Old Navy has recently seen some recovery, with comps up 3% in 2024. Gap officials noted that the fourth quarter marked the chain’s eighth consecutive quarter of market share wins. Richard Dickson, Gap Inc.’s CEO, said about Old Navy on Gap’s fourth-quarter analyst call, “We’ve been connecting our customers with products they want through compelling storytelling and executing with clarity in pricing and in-store navigation. The brand is gaining more relevance as demonstrated by our digital dialogue, notably our strong social and influencer engagement.”
The gains are being led by more casual areas, specifically in denim and active. Finding growth in dressier categories could help alleviate concerns about Old Navy plateauing as its store count surpasses 1,250 in North America. A planned spin-off of Old Navy as a standalone public company was canceled in 2020 due to stalled growth.
The shuttering of J.Crew’s bridal business in 2016 and David’s Bridal’s closure of about 100 doors in its 2023 bankruptcy proceeding created some opportunities to fill voids in special occasion dressing for other retailers.
However, Old Navy’s biggest competitors at its price point are fast-fashion players like Zara, Mango, and H&M, which have become go-to options for affordable fashion. Additionally, Walmart and Target offer occasionwear options online. Renting dresses from platforms such as Rent the Runway and Nuuly is also increasingly common as younger consumers see both a cost and sustainability benefit.
Liza Amlani, principal and founder at Retail Strategy Group and a RetailWire BrainTrust panelist, believes Old Navy could find some success with special occasion dresses.
“I think this will be a win for Old Navy, especially if they capture customer feedback and adjust the assortment as they learn more about what the customer wants,” she told Retail Dive, which first reported on Old Navy’s entry into occasionwear.
She suspects Old Navy will gain an advantage over those only offering occasion dresses online since try-on is important. Amlani said, “The last thing a customer wants to do is take a chance on what they will wear to a milestone event.”
BrainTrust
Allison McCabe
Director Retail Technology, enVista
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Georganne Bender
Principal, KIZER & BENDER Speaking
Recent Discussions
Discussion Questions
What will be critical for Old Navy to find success in special occasion dresses?
From whom will Old Navy likely have to take share from in the category?
Poll
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I was skeptical until I visited the site. Styles are fresh and prices are right. Go Old Navy!
Yes. The customers of Old Navy buy these products already, so there is no reason why the store can’t accommodate their needs in this category. Abercrombie & Fitch has sold occasion dresses for a while and it has been a success.
Old Navy knows its customers. If they are loyal to casual clothes, why not try and bring them into the “special occasion” clothes? After all, they are already happy customers. Even though their focus has never been on special occasion type wear, that doesn’t mean it doesn’t make sense to extend the same value proposition to an extension of their regular merchandise. Furthermore, they will know quickly what adjustments to make and if the concept does or doesn’t work.
They should sell them if people will buy them; obviously this is a “duh!” kind of statement, so the real question is “if you were in the market for a special occasion dress – or, in my mind, any kind of dress, really – where would Old Navy rank on your list ?” I have trouble seeing it being high on many of them.
Old Navy has had a nice selection of dresses for a number of years now. During the holidays selections have included sequined skirts and velvet suits, and unlike its competitors, Old Navy is generous with sizing.
So should Old Navy sell special occasion dresses? I say why not? It just seems like the next step in an ever evolving assortment designed to thrill customers.
It’s always a good thing when you hear a positive comment from women. There are retailers that carry special occasion dresses and it’s meh. The assortment they offer is more size inclusive, fresh and relevant to the consumer. Good for them.
Don’t get me started on the selection of special occasion dresses. My mother of the groom search was a disaster. Old Navy found a need and filled it.
Old Navy’s target market typically consists of value-conscious consumers looking for affordable and versatile clothing options.
Special occasion dresses could appeal to customers seeking budget-friendly yet stylish outfits for events such as weddings, parties, or graduations.
By offering these dresses, Old Navy could attract a broader customer base, including those who may not have considered the brand for more formal attire.
If successful, Old Navy will likely have to take share from competitors such as H&M, Forever 21, and Target, which also offer affordable special occasion dresses. These brands are known for providing budget-friendly fashion options that appeal to similar demographics.
By positioning itself in this market, Old Navy could attract consumers looking for stylish yet economical choices for their special events.
Taking share from Forever 21 will be a cake walk since they are about to shut down – and that does represent a good chunk of the market. Old Navy’s price points are ideal + supported with superior sourcing & logistics.
Special? Makes sense to me. A special occasion is defined to me as a once or twice event. Why spend a lot of money
Why not? Until and unless the data tells them its a bad idea, the additional reason to visit the locations only benefits the brand. Good for Old Navy!
I agree that Old Navy’s affordable prices and in-store try-on options give them an edge over online-only competitors. If they can keep offering a good mix of styles while staying true to their value, they’re well positioned for success.
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I was skeptical until I visited the site. Styles are fresh and prices are right. Go Old Navy!
Yes. The customers of Old Navy buy these products already, so there is no reason why the store can’t accommodate their needs in this category. Abercrombie & Fitch has sold occasion dresses for a while and it has been a success.
Old Navy knows its customers. If they are loyal to casual clothes, why not try and bring them into the “special occasion” clothes? After all, they are already happy customers. Even though their focus has never been on special occasion type wear, that doesn’t mean it doesn’t make sense to extend the same value proposition to an extension of their regular merchandise. Furthermore, they will know quickly what adjustments to make and if the concept does or doesn’t work.
They should sell them if people will buy them; obviously this is a “duh!” kind of statement, so the real question is “if you were in the market for a special occasion dress – or, in my mind, any kind of dress, really – where would Old Navy rank on your list ?” I have trouble seeing it being high on many of them.
Old Navy has had a nice selection of dresses for a number of years now. During the holidays selections have included sequined skirts and velvet suits, and unlike its competitors, Old Navy is generous with sizing.
So should Old Navy sell special occasion dresses? I say why not? It just seems like the next step in an ever evolving assortment designed to thrill customers.
It’s always a good thing when you hear a positive comment from women. There are retailers that carry special occasion dresses and it’s meh. The assortment they offer is more size inclusive, fresh and relevant to the consumer. Good for them.
Don’t get me started on the selection of special occasion dresses. My mother of the groom search was a disaster. Old Navy found a need and filled it.
Old Navy’s target market typically consists of value-conscious consumers looking for affordable and versatile clothing options.
Special occasion dresses could appeal to customers seeking budget-friendly yet stylish outfits for events such as weddings, parties, or graduations.
By offering these dresses, Old Navy could attract a broader customer base, including those who may not have considered the brand for more formal attire.
If successful, Old Navy will likely have to take share from competitors such as H&M, Forever 21, and Target, which also offer affordable special occasion dresses. These brands are known for providing budget-friendly fashion options that appeal to similar demographics.
By positioning itself in this market, Old Navy could attract consumers looking for stylish yet economical choices for their special events.
Taking share from Forever 21 will be a cake walk since they are about to shut down – and that does represent a good chunk of the market. Old Navy’s price points are ideal + supported with superior sourcing & logistics.
Special? Makes sense to me. A special occasion is defined to me as a once or twice event. Why spend a lot of money
Why not? Until and unless the data tells them its a bad idea, the additional reason to visit the locations only benefits the brand. Good for Old Navy!
I agree that Old Navy’s affordable prices and in-store try-on options give them an edge over online-only competitors. If they can keep offering a good mix of styles while staying true to their value, they’re well positioned for success.