Two Old Navy locations in the same city are set to close by month's end, confirms the brand. Parent company Gap Inc. is continuing its pattern of store closures, affecting its other brands, including Gap and Banana Republic.
Old Navy Confirms Closure of Two Toronto Area Stores
In a recent statement to CTV News Toronto, an Old Navy representative announced the impending closure of their stores in Toronto Eaton Centre and Markham's Markville Shopping Centre, scheduled for January 24.
The spokesperson from Old Navy explained, "We regularly review our store locations to ensure we offer the best possible experience to our customers." This decision is part of their ongoing effort to maintain a robust and effective retail presence.
Despite these closures, Toronto residents can still access Old Navy products at other locations in the area, including Vaughan, Richmond Hill, and Scarborough, and online through the Gap Inc. family of brands, encompassing Athleta, Banana Republic, and Gap.
This development marks another significant retail change in Toronto, following the trend of big-name store closures in the city.
This latest development with Old Navy's closures is part of a broader pattern in Canada's retail sector, where other large retailers like Bed, Bath & Beyond and Nordstrom shut down several locations in the past year.
Bed Bath & Beyond closed all its stores across Canada in April last year following a bankruptcy filing. Just a few months later, Nordstrom also pulled out from the Canadian market in June. This included shutting down all physical stores and Nordstrom's online platform due to the unprofitable Canadian operations.
CTV News Toronto attempted to contact Cadillac Fairview, the real estate firm that owns the malls housing the soon-to-be-closed Old Navy stores, but received no response before this publication.
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Gap Inc.'s Diverse Retail Portfolio Includes Old Navy
Gap Inc. owns Old Navy and other well-known brands like Gap, Banana Republic, and Athleta. Notably, Old Navy, recognized for its affordable pricing, has performed relatively well compared to its sister stores in the Gap Inc. group.
In a significant retail shift, Gap Inc. has closed around 350 of its Gap and Banana Republic stores between October 2020 and the end of 2023. This move reflects the changing dynamics in the retail industry and the company's strategy to adapt to market trends.
Despite the broader trend of store closures, Old Navy has grown, opening 15 new stores between 2021 and 2022. The brand has been inventive in adding value for its customers through new products and store policies.
A notable initiative was the introduction of a one-year "kid-proof guarantee" on all uniform styles during the 2023 back-to-school season. This policy assured parents they could get a full refund if the clothing didn't withstand the school year's demands.
Another significant step was Old Navy's decision to add more pockets to women's dresses, driven by consumer research indicating a strong preference for this feature among shoppers.
Marshal Cohen of NPD Group revealed to CNN Business that Old Navy's introduction of pockets in women's dresses could slightly increase production costs but significantly boost retail prices.
Despite innovations, Old Navy isn't immune to market pressures, exemplified by the May closure of its San Francisco flagship store due to lease expiry. This closure reflects a wider trend, as major retailers like Target, Walmart, and Walgreens also left San Francisco, citing retail crime, and several chain restaurants and CVS are closing stores amid falling sales.
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