Old Navy Or 60 New Brand Stores Will Be Added

American leisure apparel giant Gap Inc. (NYSE:GPS) Cape group will further play its cheap brand.

The growth momentum of the Old Navy will add 60 new units in 2018.

The store has made the brand break through 1000 stores in the United States. At the same time, the smaller sports brand Athleta of the group will also benefit from the trend in recent years.

According to the world clothing and shoe net, as of the 2017 fiscal year of February 3rd, the Cape group achieved a revenue of 15 billion 855 million US dollars, an increase of 2.2% compared with the 15 billion 516 million US dollars in 2016 and a 3% increase in same store sales, of which Old Navy growth 6% offset the same store decline of Gap and Banana Republic 1% and 2% respectively.

Over the past few years, Old Navy has been a pillar brand of the group. Its turnover has already far exceeded that of the more famous Gap brand. In the 2017 fiscal year, the revenues of the two brands were 7 billion 238 million dollars and 5 billion 318 million dollars respectively.

As of the end of fiscal year 2017, GAPP Group operates 3594 stores worldwide, a year-on-year decrease of 65, compared with 3659 in January 28, 2017.

The decline in the number of American giant stores is mainly caused by the withdrawal of some two brands of Gap and Banana Republic.

Art Peck, the group's chief executive, said that the main purpose of the store was to close the mall stores where the old people gathered and pfer them to more young consumers.

The group has announced that it will further close 200 Gap and Banana Republic stores as of 2020.

As of February 3rd, the Old Navy brand of Cape Group operates 1080 stores, of which 1066 are located in North America.

The 90% market in the North American market is located in the United States, while others are in the Canadian market.

In addition to adding 60 stores in the US market, the Group intends to redecorate 150 Old Navy stores in the current fiscal year.

Old Navy continues to receive priority treatment.

In order to cope with the new expansion plan and deal with the pressure brought by Amazon.com Inc. (NASDAQ:AMZN) Amazon to the traditional retail industry, Old Navy will also invest in technology.

Art Peck said it would test dozens of online stores to pick up services online, and update mobile apps. This will help consumers to view inventory online through app, quickly browse product reviews, and "pay attention to the practical convenience brought by technology upgrading to consumers".

However, Art Peck still has reservations about such a big platform such as Amazon. He praised Amazon as an efficient and excellent shopping platform, but it is not a platform conducive to discovery and exploration. For the fashion industry, exploration is an important part of it.

Previously, Art Peck had said that it did not rule out cooperation with Amazon. However, in 2017, the group achieved an income of 3 billion 100 million US dollars, accounting for nearly 20% of the total revenue. It was the largest among the four fast fashion groups, and second of the H&M Hennes & Mauritz AB (HM-B.ST), Haines and Maurice group accounted for 12.5% of the total electricity supplier income last year, while Inditex SA (ITX.MC) Indo Textile Group (the total name Industria ITX.MC) and 7% (7%) sales group.

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