Old Navy
An American value-priced apparel retailer offering casual clothing and accessories for the whole family.
Last updated October 26, 2026
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Overview
Old Navy is an American apparel and accessories retail brand owned by Gap Inc. It was created in the early 1990s as a lower-priced alternative within the Gap portfolio and began trading under the Old Navy Clothing Co. name in March 1994. The first locations opened in Northern California, after which most Gap Warehouse stores were converted to the new format. From the outset, Old Navy was designed to combine accessible prices with a distinctive, high-volume shopping environment rather than simply operate as a conventional outlet division. Its original stores used an industrial warehouse-inspired design with broad aisles, metal fixtures, polished-board checkout counters, cement floors, colorful merchandise presentations, impulse products, and shopping carts. The format was intended to make apparel shopping feel approachable and energetic, while supporting a wide assortment at relatively low prices. Old Navy also developed a deliberately theatrical marketing identity, including humorous television advertising featuring entertainers such as Carrie Donovan and Morgan Fairchild and the canine character Magic. The brand expanded rapidly. It reportedly became the first retailer to exceed $1 billion in sales within its first four years and had opened 500 stores by 2000. International development began in 2001 with stores in Ontario, Canada. Old Navy also tested adjacent concepts, including a coffee shop inside a San Francisco store and an Old Navy Kids location in Colorado, although both experiments were discontinued. Old Navy has periodically adjusted its store environment and merchandising strategy. A 2005 repositioning attempted to give the brand a more fashion-oriented and boutique-like appearance in response to competitors such as Hollister and American Eagle. The initiative involved a new logo, remodeled stores, more polished visual merchandising, and more fashion-directed advertising, but the investment did not produce the desired results and the format was not retained as the core model. Beginning in 2011, Project ONE sought to make stores more family-oriented and easier to shop through brighter lighting, stronger color, improved layouts, quick-change areas, and more efficient checkout zones. In 2012, Gap Inc. recruited Stefan Larsson from H&M to lead Old Navy after several years of competitive pressure. Larsson strengthened the design organization and recruited talent with experience at brands including Coach, Nike, Reebok, and The North Face. The strategy emphasized exclusive product development, faster fashion response, and a stronger balance between trend relevance and value. By 2015, Old Navy's United States annual sales were reported at approximately $6 billion, making it one of Gap Inc.'s most important businesses. The brand's stores include standard locations and larger flagship sites. Flagship stores have operated in major cities including New York, Seattle, Chicago, Manila, and Mexico City; a Times Square flagship opened in 2017. Old Navy's assortment covers women's, men's, children's, baby, maternity, plus-size, and active-oriented apparel, along with footwear, accessories, denim, sleepwear, and seasonal merchandise. Its central proposition remains affordable, broadly accessible casual fashion for families and value-conscious shoppers. Old Navy remains part of Gap Inc. Following a 2019 announcement that the brand would be separated from the rest of the group, Gap Inc. reversed the plan in January 2020. Old Navy therefore continues to operate as a Gap Inc. brand, with its own merchandising and retail identity but within the parent company's corporate structure.
History
Old Navy developed from Gap Inc.'s effort to create a lower-priced retail concept. In the early 1990s, Gap began operating Gap Warehouse locations in existing outlet spaces. On March 11, 1994, the division was renamed Old Navy Clothing Co. to create a separate identity from Gap. The name was selected after other proposed names were rejected; the final wording was reportedly inspired by a building seen during a visit to Paris. The first Old Navy stores opened in Colma, San Leandro, and Pittsburg, California. During the remainder of 1994, dozens of additional stores opened and most Gap Warehouse locations were converted. The initial retail concept deliberately differed from the more traditional Gap environment. Stores were larger, with warehouse-like materials, broad aisles, shopping carts, colorful displays, and low-priced impulse merchandise near checkout. The format sought to make value shopping entertaining and accessible, while allowing the retailer to carry a broad family assortment. Advertising reinforced this distinction through humorous, camp-oriented television campaigns featuring Carrie Donovan, Morgan Fairchild, and the dog character Magic. Old Navy's early expansion was unusually rapid. The retailer reported reaching $1 billion in sales within its first four years and opened its 500th store by 2000. Its first international move came in 2001, when it opened 12 stores in Ontario. The company also tested non-core concepts, including a coffee shop in San Francisco and an Old Navy Kids store in Littleton, Colorado. Neither experiment became a lasting part of the business. In 2005, president Dawn Robertson led a major repositioning intended to make Old Navy feel more fashion-oriented and to compete more directly with Hollister and American Eagle. The program included a new logo, boutique-inspired locations, upgraded materials, murals, landscaping elements, mirrors, and more fashion-led advertising. Some remodeled stores required substantial investment, but the approach was judged unsuccessful and Robertson subsequently left the company. The retailer returned toward a more accessible and value-focused model. Project ONE, introduced in 2011, represented a second major store strategy. Rather than emphasizing an aspirational boutique environment, it focused on families and the practical requirements of everyday shopping. The program added brighter lighting, stronger colors, clearer circulation, quick-change areas, and more efficient checkout spaces. By July 2011, approximately one-third of North American stores had adopted the redesign. In 2012, Gap Inc. appointed Stefan Larsson, formerly associated with H&M, to lead Old Navy. He recruited design talent from several major fashion and sportswear companies and emphasized exclusive product creation, improved fit, and more responsive merchandising. The strategy helped Old Navy become a major contributor to Gap Inc.; by 2015, reported United States annual sales were approximately $6 billion. Larsson left in 2015 to join Ralph Lauren and was succeeded by Sonia Syngal. The brand continued expanding its large-format retail presence, including flagship stores in major cities and a Times Square location opened in 2017. It also participated, through Gap Inc., in the Business for Innovative Climate and Energy Policy coalition from at least 2013. In 2019, Gap Inc. announced both Old Navy's withdrawal from China and a plan to separate Old Navy from the rest of the company. The proposed corporate split was abandoned in January 2020. Old Navy consequently remained a Gap Inc. brand, operating as a distinct mass-market apparel retailer within the group.
- 2020
Spin-off plan abandoned
[1]Gap Inc. cancels the planned separation and retains Old Navy within the group.
- 2019
Separation and China-exit plans announced
[1]Gap Inc. announces plans to spin off Old Navy and withdraw the brand from China in 2020.
- 2017
Times Square flagship opens
[1]Old Navy opens a large flagship store in Times Square, New York.
- 2015
United States sales reach reported peak scale
[1]Old Navy's United States annual sales are reported at about $6 billion, while Sonia Syngal succeeds Stefan Larsson.
- 2012
Larsson takes over Old Navy
[1]Stefan Larsson is appointed to lead the division and upgrades its design and merchandising organization.
- 2011
Project ONE begins
[1]Old Navy begins a family-oriented redesign of its North American stores.
- 2005
New Old Navy repositioning
[1]The brand introduces a fashion-focused identity and boutique-style store redesign.
- 2001
Canadian expansion
[1]Old Navy opens stores in Ontario and begins international expansion.
- 2000
500-store milestone
[1]The retailer reaches approximately 500 stores.
- 1997
Rapid sales growth and kids concept
[1]Old Navy is reported to surpass $1 billion in sales within its first four years and opens an Old Navy Kids test location.
Products and positioning
Mass-market, family-oriented casual fashion emphasizing affordability, broad sizing, convenience, and frequent seasonal merchandise updates.
Apparel · 1994
Women's apparel
Old Navy's women's assortment spans everyday tops, bottoms, dresses, sweaters, outerwear, denim, intimates, sleepwear, and seasonal pieces. The range is designed around accessible fashion, practical fabrics, and broad use across work, leisure, and family activities. The brand has also offered maternity and extended-size categories.
Apparel · 1994
Men's apparel
Men's merchandise centers on casual wardrobe staples such as T-shirts, polos, shirts, jeans, chinos, shorts, fleece, jackets, underwear, and sleepwear. The category supports Old Navy's value positioning by combining basic replenishment products with seasonal colors, prints, and trend-led casual items.
Apparel · 1994
Kids' and baby clothing
Old Navy sells clothing for babies, toddlers, children, and teenagers, including playwear, school-oriented basics, denim, outerwear, pajamas, occasion clothing, and seasonal collections. The family assortment is central to the brand's positioning and supports coordinated purchasing across household members.
Apparel · 1994
Denim
Denim is one of Old Navy's most recognizable categories. The assortment includes jeans and denim separates in multiple rises, fits, washes, and size ranges, supplemented by jackets, skirts, and shorts. It serves both as an everyday staple and as a vehicle for seasonal fashion updates.
Sportswear
Activewear
The active assortment includes performance-inspired tops, leggings, shorts, sweatshirts, sports bras, and related casual sportswear for adults and children. It is positioned for everyday movement and leisure rather than as a specialist technical-sports line.
Accessories · 1994
Footwear and accessories
Old Navy complements apparel with accessible footwear and accessories, including casual shoes, sandals, bags, belts, hats, jewelry, cold-weather accessories, and other seasonal add-ons. These products support outfit-building and impulse purchasing in stores and online.
Controversies
2020
Lawsuit against Old Navy over fatal choking incident
A woman from Georgetown County filed a lawsuit against Old Navy, alleging that her grandson died after choking on a ball dispensed at an Old Navy store in Myrtle Beach. The lawsuit asserts claims of wrongful death and negligence. The source report does not state that any court has reached a determination in the matter.
2018
Maryland customer detention lawsuit
A customer alleged that a Maryland store manager reported her for shoplifting and assisted police in detaining her even though she had purchased the merchandise. The manager was terminated, and the dispute proceeded through later litigation.
Sale-price and false-advertising class action
A class action alleged that Old Navy represented certain regular prices as sale prices through store signage and online advertising. A settlement covered eligible United States purchasers for the stated period, subject to exclusions.
Marketing campaigns
- 2011Project ONE
United States · Canada
A store and customer-experience program targeted family shoppers through brighter interiors, easier navigation, quick-change areas, and improved checkout operations.
Outcome. Rolled out to roughly one-third of North American stores by July 2011.
- Carrie Donovan and Magic advertising
United States
Early Old Navy television advertising used campy humor, celebrity appearances, and the Magic dog mascot to establish a playful identity distinct from Gap.
Outcome. Helped define the brand's early mass-market personality.
Brand decisions
2019
Plan to separate Old Navy from Gap Inc.M&ABackground
Gap Inc. proposed restructuring its portfolio around Old Navy as a separate company and its other brands as a consolidated group.
Action taken
The parent announced a planned corporate separation of Old Navy.
Aftermath
The separation was abandoned in January 2020, leaving Old Navy inside Gap Inc.
2012
Strengthen design and exclusive product developmentStrategyBackground
Gap Inc. sought to address sales losses to faster-fashion and specialty apparel competitors.
Action taken
Stefan Larsson recruited design talent from Coach, Nike, Reebok, and The North Face and emphasized exclusive Old Navy merchandise.
Aftermath
Reported United States annual sales reached approximately $6 billion by 2015.
Reported annual United States sales. Approximately $6 billion (2015)
2011
Adopt the Project ONE store formatStrategyBackground
Old Navy wanted to improve the shopping experience for its core family customer.
Action taken
Stores were redesigned with brighter lighting, clearer layouts, quick-change stations, and more efficient checkout areas.
Aftermath
The redesign expanded across North American locations and reinforced the family-oriented positioning.
2005
Pursue a high-fashion store identityStrategyBackground
Old Navy sought to respond to competition from fashion-oriented specialty retailers.
Action taken
The company introduced a new logo, remodeled selected stores in a boutique style, and shifted advertising toward a more polished fashion message.
Aftermath
The initiative was considered disappointing, and the brand subsequently moved back toward its accessible family and value proposition.
Recent events
Old Navy offers 50% off during Giftober sale[4]
Reported:
Old Navy is offering 50% off everything in customers’ carts as part of its Giftober savings event.
- Unconfirmed
Lawsuit against Old Navy over fatal choking incident[3]
Reported:
A Georgetown County woman is suing Old Navy, claiming her grandson died after choking on a ball dispensed at an Old Navy store in Myrtle Beach. The lawsuit alleges wrongful death and negligence; the source does not report a court determination.
- Unconfirmed
Gap retail chains sue Brookfield affiliates over rent obligations[5]
Reported:
Five Gap retail chains—Gap, Athleta, Banana Republic, Old Navy and Janie & Jack—sued Brookfield affiliates, arguing that coronavirus-related restrictions made their lease obligations illegal, impossible or impracticable. They sought to modify or terminate the leases and obtain refunds of rent and expenses paid in advance for March 2020.
- Unconfirmed
Regency Centers sues Saks and Gap over unpaid rent[6]
Reported:
Regency Centers sued Saks Fifth Avenue and Gap Inc. over alleged unpaid rent and upkeep costs for their Saks Off 5th and Old Navy stores at Buckhead Station; the article reports Regency's claims, not a court determination.
Gap announced temporary North American store closures[7]
Reported:
Gap announced that it would temporarily close its shops across North America starting March 19, including stores of its listed store brands.
Old Navy announces plans to exit China[8]
Reported:
GAP Group announced that its Old Navy brand planned to stop operating in China in 2020; the article reports that GAP China personnel confirmed the planned exit.
Old Navy announces planned exit from China[9]
Old Navy announced that it would exit the China market starting in 2020, following its planned separation as an independent brand.
Gap cuts annual earnings outlook[10]
Gap said it had cut its earnings outlook for the year as sales at Gap, Banana Republic and Old Navy fell in the most recent quarter.
Sources17 sources
- 1Old Navyen.wikipedia.org
- 2Old Navy official websiteoldnavy.gap.com
- 3Lawsuit against Old Navy over fatal choking incidentlive5news.com
- 4Old Navy推出Giftober促销，全单商品五折eonline.com
- 5Gap旗下零售品牌就租金义务起诉Brookfield关联公司therealdeal.com
- 6Regency Centers因欠租起诉Saks与Gapbisnow.com
- 7Gap宣布暂时关闭北美门店finance.yahoo.com
- 8Old Navy宣布计划退出中国市场finance.sina.com.cn
- 9Old Navy宣布计划退出中国市场sc.stock.cnfol.com
- 10Gap下调年度盈利预期timesleaderonline.com
- 11销售额增长乏力 GAP旗下Old Navy品牌明年退出中国市场finance.sina.com.cn
- 12又一快时尚品牌在华遇冷 Gap子品牌Old Navy将撤出中国finance.sina.com.cn
- 13GAP集团旗下Old Navy将退出中国_个股资讯_市场_中金在线sc.stock.cnfol.com
- 14GAP旗下品牌Old Navy宣布退出中国市场epochtimes.com
- 15Gap子品牌Old Navy将撤出中国，专注北美市场发展finance.sina.com.cn
- 16Old Navy撤出中国市场 GU启动全国拓店计划finance.sina.com.cn
- 17Woman sues Old Navy after grandson dies following choking incidentwtoc.com
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