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Fayetteville Old Navy helping fill earnings gap

By Scott Nunn, posted 3 years ago
More Old Navy stores are being built and existing ones are getting major interior makeovers, including the store at Fayetteville’s Glensford Commons. (Photo published with permission from Old Navy)
 

Long before anyone had heard of COVID-19, many brick-and-mortar retail stores already were struggling, disrupted by the likes of Amazon as well as the advent of less-crowded, open-air environments modern-day shoppers prefer. The pandemic, of course, added insult to injury.

Gap, a longtime staple in the traditional cookie-cutter mall model, is fighting back … and they’re calling in the navy — Old Navy, that is, the American clothing retailer owned by Gap Inc.

As Gap and one of its other main brands, Banana Republic, have seen earnings on a slippery slope, the Old Navy model is proving more profitable. With Gap Inc. trimming its number of Gap and Banana Republic stores, more Old Navy stores are being built and existing ones are getting major interior makeovers, including the store at Fayetteville’s Glensford Commons.

“The Old Navy Glensford Commons remodel is part of our ongoing commitment to increase convenience capabilities and create a seamless experience for our customers,” a spokesperson for Gap Inc. told the Fayetteville Business Journal on Wednesday. “As we continuously evaluate the needs and ages of our stores, we’re excited to bring a reimagined in-store experience to Glensford Commons.”

According to the spokesperson, among the updates are refreshed lighting fixtures, remodeled fitting rooms and restrooms, and a modernized sales floor “to match the look and style of our latest fleet of stores.”

Also getting a makeover are the checkout counters, as well as the “cash wrap” areas. (In the world of retail, the “cash wrap” is a place customers have to pass through to exit a store, whether they’re buying something or not.)

“It’s essentially the last chance you have to entice them to make a purchase,” according to Vend, a sales-consulting firm that works with retail stores.

While Gap and Banana Republic often were located in traditional malls, the Old Navy brand tended to be larger and more likely to be a standalone store. 

"As part of the brand’s growth strategy, Old Navy is focused on opening new stores in smaller markets to reach new customers who have had the opportunity to shop the brand online but haven’t had access to a local store," the spokesperson said.

Although the Glensford Commons Old Navy up-fit is not related to the pandemic, the Gap Inc. spokesperson said the store remains outfitted with a Buy Online Pick Up in Store (BOPIS) option and an in-store, quick-pickup station so online shoppers don’t have to wait in line. The store also continues to offer contactless curbside pickup. 

Staffing has been another post-pandemic challenge for stores everywhere. And although Gap does not comment on its labor metrics, the spokesperson said the chain has a straightforward strategy to “attract, hire and retain talent.” 

“Our recruitment strategy is rooted in our company's belief that an inclusive and diverse workforce drives creativity and innovation, and it enhances business results,” the spokesperson said.

A big part of that strategy is focusing more on individual skills rather than putting so much emphasis on an applicant's work history. 

“We’re investing in learning and development opportunities that are catered and unique to individual skill sets.”

And some extra cash never hurts.

After strong first-quarter earnings, Gap paid $300 bonuses to 70,000 eligible hourly employees, the spokesperson said.

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