A PYMNTS Company

US: Gap to separate Old Navy brand

 |  March 3, 2019
Gap will separate its better-performing Old Navy brand and shutter about 230 stores of its struggling namesake apparel business, reported Reuters.
Gap said Thursday that it would break into two companies. One of the companies will contain Old Navy, while the other yet-to-be-named business, currently called NewCo, will comprise Gap, Banana Republic and other brands, including Athleta and Hill City.
The move is designed to allow Old Navy, which has grown to $8 billion in annual sales since it opened its first store in 1994, to expand on its own. Meanwhile, the company can consolidate its older brands like Gap and Banana with its newer ones like Athleta and Hill City. NewCo will have about $9 billion in annual sales.
Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.