Gap Inc, the Old Navy brand, plans to nearly double its storefront in North America as the clothing retailer prepares to split from its parent company next year.
As a standalone company, Old Navy, which offers more affordable clothing and accessories, plans to open 860 stores in North America and said it would focus on opening retail outlets in smaller markets and downtown locations.
Old Navy, which had sales of around $ 8 billion in 201
Earlier this year, Gap announced it would spin off the Old Navy brand, a bright spot for the demanding retailer, to a listed company. Gap, Athleta, Banana Republic and the remaining brands will be part of the new Gap Inc.
"What separates us is that we can have the focus we need to deliver with confidence this strategy that we know is the the right one, "said Old Navy Chief Sonia Syngal, about an investor call that was held to provide an update on the planned separation, which is expected to be completed by 2020.
Old Navy's plans to open new stores come as Gap and other brick-and-mortar players have closed underperforming locations that are bending to pressure from online sellers, fast-fashion retailers and ever-changing consumer trends.
For the Gap brand, the company said it plans to focus on the denim category, while also working towards better margins.
"We're going to get a stake in denim, and it's going to be the fuel that strengthens (a) turnaround," Gap Inc CEO Art Peck said of the investor conversation.
Gap also expects $ 400 million to $ 450 million in one-time expenses expense and $ 300 to $ 350 million in capital-related expenses between 2019 and 2021.