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Gap and Old Navy Are Splitting Up Into Two Separate Companies, 200 Gap Stores to Close

Gap Inc. — which continues to face big challenges — is making a major change.
The retailer announced today that it will split up into two publicly traded companies. The first will be Old Navy, while the second is a yet-to-be-named entity that will include Gap, Athleta, Banana Republic, Intermix and Hill City.
Gap expects the new company — which it’s referring to as “NewCo.” for now — to bring in about $9 billion in annual sales. Old Navy on its own currently draws around $8 billion in sales yearly.
“As we look ahead to 2019 and beyond, we know what we need to do to win and, combined with the separation we announced today, we will be well positioned to leverage the power of our brands and the talented teams that lead them to accelerate the pace of change, improve execution and deliver profitable growth,” CEO and president Art Peck said in a statement.
Peck will be NewCo. CEO, while Old Navy CEO Sonia Syngal will continue to head up the standalone.
Although Gap Inc. has struggled amid the shifting retail landscape, Old Navy has been a bright spot for the company, successfully luring budget-focused consumers in and away from competitors like JCPenney and

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Via:: https://footwearnews.com/2019/business/retail/gap-old-navy-separate-1202754323/