Gap is preparing to spin-off Old Navy into its own separate entity, and while I do love a good spin-off (they tend to outperform, after a quarter or two of woe), I am not so excited about Old Navy.
At its investor event on Thursday, Old Navy, which has about 1,200 stores, said it wants to reach 2,000 locations by opening stores, mostly in smaller, underserved markets. The company didn’t specify a timeline and said it aims to eventually hit $10 billion in annual sales. Old Navy opened 145 stores between 2016 and 2018, the company said.
-- Patrick Thomas, WSJ
Unless these new stores are parked next to a Walmart or Target, I think it is going to be increasingly expensive to get people in the door.