Dive Brief:
- Old Navy has launched buy online, pickup in-store services at its stores nationwide. After ordering items available at their local stores, customers have seven days to pick up their purchases at designated kiosks, according to a Gap Inc. blog post by spokesperson Chris Cooney.
- The service has been available for a few weeks, the company said, adding that it’s leading to more online purchases from in-store customers and in-store purchases from those coming to pick up their online orders.
- By the end of the year, more than 60 Old Navy stores will be revamped, adding to 300 remodels already completed, the company also said. The renovated spaces are brighter and some have ball machines, balloons and hopscotch, according to the post.
Dive Insight:
For years now, Old Navy has served as Gap Inc.'s sales powerhouse, overshadowing its flagship Gap brand and overpowering its smaller Banana Republic, Athleta and Intermix brands.
The company said in a growth strategy unveiled last year that it expects Old Navy to exceed $10 billion and Athleta to exceed $1 billion in net sales in the next few years, driven by growth in online and mobile channels, U.S. store expansion and "continued market share leadership in loyalty categories."
Comparable sales at Old Navy Global rose 3% in the most recent quarter, far short of last year's 8% increase; Gap Global same-store sales fell 4%, equal to a 4% decline last year; and Banana Republic Global comparable sales rose 3%, slightly less than a 4% decline last year.
Old Navy honed a keen style barometer and swift supply chain that have allowed it to beat back competition from fast fashion. But that was no match for unusually cold spring weather — something already corrected with nicer days, CEO Art Peck told analysts in May, according to a transcript from Seeking Alpha. Peck also emphasized e-commerce. "Do not underestimate the importance and the power of the online business," he said.
Depending on a brand like that requires paying careful attention to it, and Old Navy is getting plenty of that, with store renovations and these new BOPIS services to make shopping easier and more pleasant. And even fun. "Just as important as getting 'fashion in a flash,' is having an amazing store experience," Cooney wrote.