Old Navy

Old Navy's mission is to offer affordable, fashionable clothing and accessories for adults, kids, baby, and Moms-to-be. All of our merchandise is sold under the Old Navy name and only in our stores or on our website. Old Navy becomes the first retail chain to reach $1 billion in sales in less than four years. Old Navy opens 12 stores in Ontario, Canada, its first units outside the United States. Old Navy, Inc., a subsidiary of The Gap, Inc., operates a chain of approximately 850 clothing stores, marketing itself as a low-priced provider of apparel to women, men, children, and infants. The chain operates throughout the United States and in Canada, home to more than 30 stores. Old Navy accounts for approximately 40 percent of The Gap, Inc.'s $15.8 billion in sales. The Gap's stunning success during its first decade of existence was eclipsed by its achievements during the 1980s. The company recorded another decade of phenomenal growth, with much of the success credited to Fisher's successor, Millard Drexler, who was appointed president in 1983. A Bronx native, Drexler joined The Gap after serving as president of apparel retailer AnnTaylor. Under Drexler's guidance, The Gap revamped its image, honed its merchandising strategy, and expanded internationally. The company also diversified its interests by either acquiring or starting other retail chains. Drexler achieved mixed results when he branched out, but the successes by far outweighed the failures. In 1983, the company acquired a two-store retailer named Banana Republic, which it tailored as an upscale version of The Gap. In 1986, Drexler started opening a chain of GapKids stores, followed by the establishment of the babyGap chain in 1990. All three, Banana Republic in particular, proved to be highly successful. Failures included Hemisphere, an upscale sportswear chain created in 1987 that was sold two years later, and Pottery Barn, a furnishings retailer that struggled under The Gap's ownership, but flourished under the stewardship of Williams-Sonoma, Inc., which bought the company in 1986 after Drexler and his team cut their losses and liquidated the chain. After Drexler spent a decade experimenting with different retail concepts, Old Navy became his next creation. The idea for the chain came from Drexler, and his inspiration was drawn from an article in a trade publication. In the early 1990s, Drexler learned that Dayton Hudson Corp., the operator of the Target and Mervyn's retail chains, was planning to introduce a new chain of stores, describing its new entry, Everyday Hero, as a cheaper version of Gap. "I thought, they must know something that we don't," Drexler remembered in a February 29, 2004 interview with the San Francisco Chronicle. Drexler sprang to action, ordering assistants to fan out and purchase merchandise in the $10 range at other retail chains. The buyers returned with an assortment of apparel from retailers such as J.C. Penney , Target , and Wal-Mart, and Drexler directed that the clothes be put on a boardroom table at company headquarters. Drexler assembled about a dozen of his advisors and the group surveyed the sampling, trying to assess if The Gap could produce a markdown version of itself. Calls were made to see if overseas garment factories could produce a lower-priced line using less expensive fabrics and finishes. The decision was made to press forward with the concept, and in August 1993, the company converted some of its Gap outlets into the new format, which initially operated under the banner "Gap Warehouse." The idea was immediately successful. The sales recorded during the first few weeks convinced Drexler and fellow executives that the lower-priced concept deserved its own identity and a format designed specifically for catering to the new demographic. After dismissing suggestions such as "Forklift," Drexler chose the name "Old Navy," having seen an identically named bar while taking a walk in Paris. The first store designed specifical