Image Courtesy of Gap Inc.
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.”