Company Gap Inc. she announced on Thursday that one of the companies will have Old Nava. Another thing to be called is Gap, Banana Republic and other brands, including Athletes.
"It is clear that the Old Navy's business model and customers have increasingly deviated from our specialized brands over time," said Gap CEO Robert Fisher in a statement. He said that every company "now requires a different strategy for advancement."
Gap announced on Thursday that Sonia Singal, Executive Director of Old Navi, will continue to lead the brand. Art Peck, CEO Gapa, will run another company.
Separation is a story of two very different businesses: the Old Navy has advanced in recent years, and sales in stores opened at least a year have grown by 3% in 2018. Jeffries' analyst described the dealer as a "machine" last fall.
In the meantime, Gap struggled – his sales fell by 5% last year.
Gap was once the best-selling brand in retail: he rode into the boom trade in the mid-twentieth century, and his T-shirts and dolcewits from the logo captured everything from teenagers to mum and celebrities such as Sharon Stone.
But the brand fell out of contact with Babi Boomer, who grew up on the brand, and failed to attract the Millennials who are now leading fashion trends.
The company has been talking about how to rebuild Gap with a good deal of work for a while. In November, Peck described Gap's trade as unprofitable. By the end of the last quarter, there were 1,242 Gap stores around the world. 758 were in North America.
On Thursday, the company announced it would close 230 Gap stores in the next two years as part of its Gap brand revitalization plan. Closures will affect the "specialty" of Gap Stores, which includes shopping based shopping centers.
Most of these stores will be in North America, Peck said to analysts on Thursday. Chief Financial Officer Teri Stoll added that the company focused on stores that did not deliver, were in "wrong locations" or were not "strategically appropriate".
About 130 of those closures will occur this year, according to Gap. The company also plans to open Old Navi and Athletes. Athletes, which will be part of the new Gap Company, is a women's entertainment chain that was successful.
Gap believes it will save between $ 250 and $ 300 million in pre-taxation over the next two years due to closing plans, according to the securities documentation. It is expected to complete the division of companies by 2020.