Old Navy, once the powerhouse in the Gap's stable of stores, has struggled mightily in recent years. On Thursday, the Gap said sales at Old Navy stores open at least a year tumbled an astonishing 27 percent in March.
The Gap has begun an overhaul, but it faces major challenges. Old Navy's previous success centered on its quirky, family-centric vibe (remember the "performance fleece" jingle?) and a strong emphasis on value-price basics.
Of late, however, its offerings have failed to stand up against even more wallet-friendly basics offered at Wal-Mart, Target, and Costco.