Although the economy is improving, Mall closures have become a common thing across America, and the retail apocalypse is not over yet. One such company that is joining the move-out list with JCPenney, Red Robin, and Lucy’s Market is Old Navy. This surprised people and made them curious: Is Old Navy going out of business 2023?
Old Navy has been in the business for 26 years now. It is an American clothing and accessories retailing company that has its headquarters in San Francisco, California.
However, the current headlines about the operation of the company have created a ruckus among people.
Let’s begin the guide by getting to the facts about Old Navy and check if it is true that the Old Navy is going out of business 2023.
Is Old Navy Going Out Of Business 2023?
It has become a trend for retail companies to abandon their stores in America. And Old Navy seems to be in the queue of those companies.
Old Navy has also been shutting down its stores since 2016. The retailer has 1,029 stores in North America and 69 in Asia. However, the company ended up closing its 53 stores in Japan, according to the statement of the company.
As of 2023, Old Navy has been closing its flagship locations in San Francisco and Chicago. This closure came weeks after Gap Inc. revealed it would slash 1800 jobs across the country as a part of cost-cutting reorganization.
However, Old Navy is not going out of business in 2023 but it is true that Old Navy has been shutting its stores in crime-ridden city San Francisco.
What Are The Reasons Old Navy Is Going Out Of Business?
According to the company, Old Navy is the powerhouse of the brand Gap. But soon, the struggle to survive started in 2019 when the sale of the company slumped.
The very first reason Old Navy was forced to close its stores was the pandemic. The pandemic created a perfect situation for shoppers to ditch shopping from physical locations and switch to online shopping.
As a result, the sales of e-commerce sites increased, leaving physical stores like Old Navy to struggle in the competitive market.
Inflation also contributed to the downfall of the company as customers had limited spending power due to the high rates.
Another reason of store closures in San Francisco is from the point of view of its employees. The employees pinpointed the closings due to the rampant shoplifting in the crime-plagued city.
One employee of the brand explained that there are shoplifters, at least 12-14 in a day. They have been also hit 22 times in the last 2 days, and the situation worsened last year. It’s really bad because it’s downtown San Francisco, and it’s really out of control.
Another employee added that they have also seen these shoplifters carry hammers, and they are just super comfortable while stealing $2000 worth of stuff from the store.
Who Owns Old Navy?
Old Navy is an American clothing brand that was started in 1994 by Millard Drexler, the then-CEO of the company Gap.
Millard opened a Gap Warehouse in the existing Gap locations in 1993. Later, in 1994, he renamed the Gap Warehouse as Old Navy. The idea was to build a separate image of Old Navy from its parent company, Gap Inc.
So, from 1994, Gap Inc. has been the parent company of both Old Navy and Gap.
The largest of Old Navy stores are its flagship stores, which are located in San Francisco, New York, Seattle, Chicago, Manilla, and Mexico City.
In addition to Old Navy, Gap In. also owns Banana Republic, Gap, and Athleta stores. Moreover, the brand is all set to close 50 stores in the coming months.
List Of Banana Republic North America Store Closures
This is a list of Banana Republic closed stores since the beginning of FY 2020:
|Yorkville – 86th & 3rd Ave., New York, NY|
|67th & Broadway – New York, NY|
|Hudson Yards – New York, NY|
|Lexington Ave New York, NY|
|Banana Republic, 13th & F – Washington, D.C.|
|Wisconsin/Georgetown – Washington, D.C.|
|Commons at Northpark – Midland, TX|
|Cielo Vista – El Paso, TX|
|Promenade at West End – Lubbock, TX|
|Northeast – Hurst, TX|
|Shops at Willow Bend – Plano, TX|
|Town & Country Village – Houston, TX|
|University Park Village – Fort Worth, TX|
|West Village – Dallas, TX|
|Highland Village – Houston, TX|
|Oakridge Centre – Vancouver, Canada|
|Southcentre – Calgary, AB, Canada|
List Of Gap Store Closures
This is a list of Gap closed stores since the beginning of FY 2020:
|Moore Plaza – Corpus Christi, TX|
|Gap, Central Texas M/P – Waco, TX|
|Gap, Champions Forest – Houston, TX|
|Gap, La Cantera – San Antonio, TX|
|Gap, Macarthur Park – Irving, TX|
|Gap, Mall del Norte – Laredo, TX|
|Gap, Market Street – The Woodlands, TX|
|Gap, North Star – San Antonio, TX|
|Gap, Northpark – Dallas, TX|
|Baby Gap, Brea Mall – Brea, CA|
|Gap Body, Chestnut – San Francisco, CA|
|Gap Factory Store, Broadway – Los Angeles, CA|
|Gap Kids, Burlingame Ave. – Burlingame, CA|
|Gap Factory Story, Fashion Outlet – San Leandro, CA|
|Gap, Arden Fair – Sacramento, CA|
|Gap, 3rd Street Promenade – Downtown, CA|
|Gap, Michigan Ave – Chicago, IL|
|Gap, N. Ave Collection – Chicago, IL|
|Gap, Old Orchard Shopping Center – Skokie, IL|
|Gap, Sheffield Ave. – Chicago, IL|
|Gap, Shops Downtown Oak Park – Oak Park, IL|
There are many stores which have been closed. So, before visiting the store, do check the list of all the closed stores on their store update.
How Popular Is Old Navy In The U.S.?
The graph below depicts the popularity of the brand Old Navy in the USA in 2022:
|Old Navy Awareness||92%|
|Old Navy Popularity||41%|
|Old Navy Usage||30%|
|Old Navy Loyalty||26%|
|Old Navy Buzz||29%|
What Is Gap And Old Navy Break Up?
Gap has been struggling as a company, and as a result, the investors of the brand are starting to lose confidence in the brand. In January 2023, Gap reported a net loss of $273 million for its recent quarter.
On the other hand, Old Navy stood out as a performer in the GAP universe. The sales of the brand have been seeing a positive transformation, while more expensive brands of the parent company, such as Banana Republic and Gap, are seeing a decline in sales.
So, the brand was so strong that GAP considered spinning it off as a standalone company, but soon this deal was canceled as soon as Old Navy’s sales slumped in 2019.
So, is Old Navy going out of business 2023?
Well, the answer to this question is a bit complicated as the store has been closing its stores in Chicago and San Francisco, but there is no statement from the company on closing the business entirely, which means the company is not planning to shut down entirely.
Moreover, according to Gap Inc., Old Navy always evaluates its real estate portfolio to ensure a healthy fleet of stores. It also plans to open 30-35 stores of Athleta and Old Navy stores.
The reasons for these closures are pinpointed to the pandemic, inflation, and the increasing crimes in San Francisco, which is also a flagship store of the brand.
In addition to this, the brand further added that the way we leverage our flagship locations has changed.
So, overall, it’s true that the brand Old Navy has been closing its stores in San Francisco, but as the facts state, it is only a strategy to save its stores and give a better experience to its customers in a crime-ridden city.
Is Gap going out of business in 2023?
It plans to close 50-55 stores of Gap and Banana Republic. However, it also plans to open 30-35 stores of Athleta and Old Navy stores. It is needless to say Gap has also joined the list with Soft Surroundings in store closures.
Which company look over Old Navy?
Old Navy is a part of Gap Inc. which made $15 million in revenue in the year 2022. The brand is also the parent company of Athleta, Banana Republic, and Gap.
Is Gap higher quality than Old Navy?
Old Navy was initially created as a cheaper version of Gap to provide clothes to the customers at affordable rates. So, yes, Gap is of higher quality than Old Navy.