Old Navy Needs Fashion Infusion

04/19/2008 05:12 am ET | Updated May 25, 2011
  • Liz Gunnison Portfolio

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.

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