Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse.

Jan 24, 2020, 00:43 IST

Old Navy was founded in 1994 in Colmar, California, with the aim to bring cheaper fashion to the masses.

Old Navy was named after a café and bar in Paris located on Boulevard Saint-Germain, which has since closed.

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. — then-owner of Target and Mervyn's — which had formerly announced plans to create a discount chain that functioned as a cheaper version of Gap.

Drexler was partially inspired due to pressure from competitor Dayton Hudson Corp. — then-owner of Target and Mervyn's — which had formerly announced plans to create a discount chain that functioned as a cheaper version of Gap.

Within just a year, Old Navy had 59 stores around the country. By 1997, the brand became the first retailer to hit $1 billion in annual sales in less than four years.

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 1997, Old Navy began airing the first of its traditionally quirky television commercials, starring fashion editor Carrie Donovan. These would set the tone for campaigns over the decades.

In the coming years, Old Navy would feature many popular stars of the time, including twins Tia and Tamera Mowry in a 1999 performance fleece commercial.

In 2000, Old Navy hit its first bump in the road. The company reported declining sales as a result of a strategy that neglected its over-30 shoppers.

Despite the troubles, Old Navy continued to eye expansion. In 2001, the brand opened 12 stores in Canada.

In 2004, Old Navy celebrated a decade in business.

By then, Old Navy had become known as a one-stop shop for the entire family.

In the mid-2000s, Old Navy continued to raise its profile with the help of celebrities. Stars including Betty White came out en masse to a series of high-profile events helping the brand to elevate its image.

In the mid-2000s, Old Navy continued to raise its profile with the help of celebrities. Stars including Betty White came out en masse to a series of high-profile events helping the brand to elevate its image.

Pete Wentz and Ashlee Simpson did, too ...

... as did Jessica Biel ...

... and Arianna Huffington, among others.

Old Navy also teamed with notables like Mark Wahlberg on charity events like a 2006 effort with the Boys & Girls Club.

In 2005, Old Navy began offering plus sizes, expanding its customer demographic.

Over the course of the early 2000s, Old Navy became the go-to place for items like multi-colored bargain flip flops ...

... as well as fun fuzzy socks.

Old Navy has also long been beloved for its Fourth of July apparel.

Old Navy also increased its visibility by sponsoring major cultural events like the American Music Awards.

Old Navy hit another slump as a result of the 2009 financial crisis and recession, joining many other retailers in a period of sales declines.

In 2012, Old Navy appointed Stefan Larsson as president. He has widely been credited with revitalizing the brand.

That same year, Old Navy opened its first store in Japan, marking the beginning of a major expansion in Asia.

Old Navy was once again at its peak, leading the way for Gap as its most profitable and successful brand.

In February 2019, Gap announced plans to spin off Old Navy into an independent company.

However, in the subsequent months, Old Navy began to join its sister brands in showing signs of struggle.

On January 16, Gap announced it would halt its plans to spin off Old Navy, citing "cost and complexity."

Though Old Navy won't operate as an autonomous company in the future, it still holds an important place in the hearts of American shoppers.

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Gap canceled its spinoff of Old Navy, but it's still one of America's most beloved brands. Here's a look at its rise to be a retail powerhouse.

Old Navy was founded in 1994 in Colmar, California, with the aim to bring cheaper fashion to the masses.

Old Navy was named after a café and bar in Paris located on Boulevard Saint-Germain, which has since closed.

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. — then-owner of Target and Mervyn's — which had formerly announced plans to create a discount chain that functioned as a cheaper version of Gap.

Within just a year, Old Navy had 59 stores around the country. By 1997, the brand became the first retailer to hit $1 billion in annual sales in less than four years.

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 1997, Old Navy began airing the first of its traditionally quirky television commercials, starring fashion editor Carrie Donovan. These would set the tone for campaigns over the decades.

In the coming years, Old Navy would feature many popular stars of the time, including twins Tia and Tamera Mowry in a 1999 performance fleece commercial.

In 2000, Old Navy hit its first bump in the road. The company reported declining sales as a result of a strategy that neglected its over-30 shoppers.

Despite the troubles, Old Navy continued to eye expansion. In 2001, the brand opened 12 stores in Canada.

In 2004, Old Navy celebrated a decade in business.

By then, Old Navy had become known as a one-stop shop for the entire family.

In the mid-2000s, Old Navy continued to raise its profile with the help of celebrities. Stars including Betty White came out en masse to a series of high-profile events helping the brand to elevate its image.

Pete Wentz and Ashlee Simpson did, too ...

... as did Jessica Biel ...

... and Arianna Huffington, among others.

Old Navy also teamed with notables like Mark Wahlberg on charity events like a 2006 effort with the Boys & Girls Club.

In 2005, Old Navy began offering plus sizes, expanding its customer demographic.

Over the course of the early 2000s, Old Navy became the go-to place for items like multi-colored bargain flip flops ...

... as well as fun fuzzy socks.

Old Navy has also long been beloved for its Fourth of July apparel.

Old Navy also increased its visibility by sponsoring major cultural events like the American Music Awards.

Old Navy hit another slump as a result of the 2009 financial crisis and recession, joining many other retailers in a period of sales declines.

In 2012, Old Navy appointed Stefan Larsson as president. He has widely been credited with revitalizing the brand.

That same year, Old Navy opened its first store in Japan, marking the beginning of a major expansion in Asia.

Old Navy was once again at its peak, leading the way for Gap as its most profitable and successful brand.

In February 2019, Gap announced plans to spin off Old Navy into an independent company.

However, in the subsequent months, Old Navy began to join its sister brands in showing signs of struggle.

On January 16, Gap announced it would halt its plans to spin off Old Navy, citing "cost and complexity."

Though Old Navy won't operate as an autonomous company in the future, it still holds an important place in the hearts of American shoppers.