Old Navy Adjusts Marketing Strategy After Summer Traffic Disappointment
Gap Inc. reported weaker-than-expected Q2 sales, largely due to a decline in Old Navy's performance. The brand saw comparable sales fall by 4% year-over-year to $2.1 billion as summer marketing efforts failed to attract the expected traffic. In response, Gap announced it is overhauling its strategy for Old Navy and has replaced the CEO of the struggling division. Old Navy’s new approach includes a stronger focus on denim, which performed well in earlier months. The brand launched an ad campaign featuring Cardi B alongside influencers that became its most-viewed ever. Traffic improved significantly by August due to these efforts. Additionally, Old Navy is collaborating with MrBeast for back-to-school marketing. Meanwhile, Gap’s namesake brand continued strong performance with 10% growth in comparable sales and a successful '90s-themed campaign featuring Hailey Bieber. Athleta also announced plans for a broader revamp of its marketing strategy to focus on purpose-driven messaging.
Tickers: $GAP
Topics: CEO change denim marketing Gap Inc. Old Navy sales performance