News about Old Navy opening more stores is going around as the company prepares to spin off from Gap (NYSE:GPS).
The current plans from Old Navy is to open 800 more stores. However, it won’t be doing this all at once. Instead, the retail company’s goal is to open 75 new stores a year until it reaches 2,000 locations. That would have it almost doubling its current store count
Plans for Old Navy opening more stores will have it targeting smaller areas that don’t currently have much in the way of clothing retailers. The company also notes that it will be avoiding malls and instead put stores in their own buildings.
That last move makes sense for the clothing retailer. Malls in the U.S. have been seeing a drop in foot traffic and it’s hurting the retail industry. Despite this, Old Navy has been doing well and is looking toward growth when it spins off from Gap in 2020, reports CNN Business.
The spinoff of Old Navy was announced by Gap earlier this year. It will have Old Navy becoming its own publicly traded company. This news about Old Navy opening more stores also falls in lines with comments made by Gap back then. At the time, it said the retailer has room to grow due to its brand recognition and leadership position in the clothing market.
GPS stock was up 1% as of Friday afternoon, but is down 25% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.