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Old Navy has become Gap’s saving grace.
Gap Inc, the parent company of its namesake brand, Banana Republic, and Old Navy, has reported negative same-store sales growth for the past two years.
Independently, however, the Old Navy brand has seen positive same-store sales growth for the past five years. Last quarter, sales were up 8%, boosting Gap Inc’s share price and rescuing it from an otherwise gloomy period.
We visited a Gap and an Old Navy store on a rainy Thursday afternoon in one of New York’s busiest shopping areas: Herald Square. We saw firsthand why the brand is resonating well with customers:
We timed our visit to Old Navy with the start of Memorial Day weekend sales. The first thing that struck us was the amount of clothing and accessories that were on sale.Business Insider/Mary Hanbury
The store was awash with signs offering discounts ranging from 20% to 60% off.
There were also several clearance sections around the store.Business Insider/Mary Hanbury
Even before discounts, however, Old Navy was still much cheaper than Gap.Business Insider/Mary Hanbury
A basic women's cardigan costs $24.94 here. At Gap, it's $49.95 (now on sale for $25 with the Memorial Day weekend discount).
The price discrepancies were evident in both the women's and men's jeans sections.Business Insider/Mary Hanbury
A pair of women’s jeans at Old Navy costs between $29.94 and $44.94.Business Insider/Mary Hanbury
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