Gap to benefit from unity
Gap Inc. surprised investors with its decision to spin off its discount Old Navy chain from the rest of its brand portfolio, creating two publicly traded companies, according to Forbes.
“By bringing them together, we can better leverage capabilities and investments across the brands, share best practices and drive efficiencies to create value for all stakeholders,” said Gap CEO Art Peck, who then added that the new specialty retail company will generate about $9 billion in sales. There’s a “significant opportunity to innovate, explore new ways to serve the customer, and quite frankly, what's on my mind is to write the next chapter for specialty retail.”
Peck said the non-Old Navy company — a yet-to-be-named entity that will consist of Gap brand, Athleta, Banana Republic, upscale boutique Intermix and men’s performance apparel line Hill City — “will be powerful,” according to Forbes.
To read the Forbes article, click here.