When was old navy founded

Fisher, a successful real estate developer, was 40 years old when he opened the first Gap store near San Francisco State University and attracted crowds of customers a generation his junior. Featuring a broad selection of low-priced blue jeans and records, Fisher's store was the first of what would become a massive chain of stores. The Gap's stunning success during its first decade of existence was eclipsed by its achievements during the s.

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 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 , the company acquired a two-store retailer named Banana Republic, which it tailored as an upscale version of The Gap. In , Drexler started opening a chain of GapKids stores, followed by the establishment of the babyGap chain in All three, Banana Republic in particular, proved to be highly successful.

Failures included Hemisphere, an upscale sportswear chain created in 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. 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 s, Drexler learned that Dayton Hudson Corp.

The buyers returned with an assortment of apparel from retailers such as J. 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 , 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 specifically to be an Old Navy store opened in in a shopping center in Colma, California.

With the enormous financial resources of The Gap supporting its growth, Old Navy expanded at a feverish pace. The success of the chain surprised even its most optimistic supporters, attracting a broader, more upscale clientele than its creators had targeted.

Customers flocked to the ever-expanding number of Old Navy stores, creating a retail phenomenon that rivaled The Gap's storied success in the s and s. Old Navy became an instant sensation with shoppers.

Their products were of Gap quality and they were offered at very reasonable prices. By the year , the company had opened stores for business and they were growing by leaps and bounds. The parent company of Old Navy is a multi-national corporation so it just makes sense that they would expand the chain to other parts of the world as well. The Old Navy brand began to expand to offer international locations in They began this with twelve new stores opened in Ontario, Canada, the near neighbor of the United States.

The most popular and beloved item sold at Old Navy retail stores is their signature denim line. This has been their number one draw for the public who loves to wear their comfortable and stylish jeans. Their jeans are also available in four different washes. They have distinct areas for men, women, girls, toddler girls, boys, toddler boys and baby.

Most Old Navy stores feature cement floors, metal shelving and checkout counters that make it feel a lot like the environment and layout for the majority of the grocery stores around. The even have shopping carts. This is all for a reason. This selling tactic helps to increase the revenues of the company.

Old Navy is a retailer that is known for their innovations. Early in their existence, they conducted a few retail experiments to find out what their customers wanted.

They started out by opening a coffee shop inside one of their San Francisco locations in By , Old Navy was already on their third logo. It was used between and The third logo came about in when the president of the company at the time, Dawn Robertson was reviewing the competition.

She was instrumental in changing the logo with a re-branding of sorts that would establish a new Old Navy sentiment and several of the new outlets and many of the existing locations were remodeled to reflect the changes. Dawn Robertson had authorized the creation of the new look for Old Navy and ordered the new locations to feature a brand new look that featured a boutique styling. Many green materials were used in their creation including rock gardens, large murals and a myriad of mirrored silver accents and posters.

The new stores were geared more towards high fashion, particularly targeting women. The St. It was a radical departure from the traditional industrial warehouse styling that Old Navy stores had previously embraced. The company had invested millions into the project that turned out to be a disappointment and as a result of the less than enthusiastic reception by loyal Old Navy customers, Robertson was asked to leave Old Navy over the venture.

In , the second re-branding campaign for Old Navy was launched. Their goal was to create a more family-oriented environment for their stores. Get the Insider App. Click here to learn more. A leading-edge research firm focused on digital transformation. Good Subscriber Account active since Shortcuts. Account icon An icon in the shape of a person's head and shoulders. It often indicates a user profile. Log out. US Markets Loading H M S In the news. Bethany Biron.

Though Gap reversed its decision to spin off its Old Navy brand last week, the brand remains beloved among Americans, outfitting families for nearly three decades. We took a look at the rise of Old Navy, starting with its founding as a low-cost alternative to Gap and the quirky celebrity-filled ads that propelled it to popularity. Visit Business Insider's homepage for more stories. Old Navy was founded in in Colmar, California, with the aim to bring cheaper fashion to the masses.

It originally started as a Gap Warehouse, which sold overstock and off-season Gap products at a discount before former CEO Mickey Drexler opted to create a new brand. Drexler was partially inspired due to pressure from competitor Dayton Hudson Corp.

Within just a year, Old Navy had 59 stores around the country. Old Navy stores were designed to be significantly larger than Gap stores, in order to provide more of a value-store feel. Building upon Old Navy's early success, the company looked to partner with celebrities and build out advertising campaigns. Before long, the Old Navy name was everywhere. Also in , Old Navy began airing the first of its traditionally quirky television commercials, starring fashion editor Carrie Donovan.