Old Navy exits Japan

[bikkuri bahn]

I'm not really surprised this happened.  Only a few months have passed since the Old Navy store opened next to Sapporo Station.  It will have lasted less than a year.

 

http://www.bloomberg.com/news/articles/2016-05-19/gap-s-old-navy-will-exit-japan-as-chain-copes-with-sales-decline

 

telling quote, and rings very true:

Standing outside a Uniqlo store near Tokyo’s main train station, Ayumi Kato won’t be missing Old Navy’s exit, as the office worker said she’s never heard of the brand.

“Sometimes I buy Gap jeans and shirts if it’s at a good price, but never with the intention to wear it more than a year,” said the 37-year-old. “Most of the time, I buy basic wear from Uniqlo. There are lots of shops available and also because their clothes can sometimes be worn for the office.”

 

 

[railsquid]

My wife was somewhat distraught at the news. Unfortunately this also means I willno longer be able to annoy her by referring to it as 旧海軍

Edited May 20, 2016 by railsquid

[Xowi]

Oh yea, brick and mortar retail is getting a beating from online sellers and the old big guys have to tighten their belts now to survive. If a retailer today has a challenging or crappy online experience, those customers will go elsewhere. GAP, Nordstrums, Macy's, etc. are all in scramble mode.

[bikkuri bahn]

Old Navy was too late to the show in Japan.  Uniqlo, which was once known as a place to get cheap fleece, already had became a general clothier that focused on basics at very reasonable prices and good quality (as good or better than mid-range clothing retailers such as Gap or Eddie Bauer IMO).  Young people who spent money on clothes (i.e. women), already had their favorite disposable clothing chains which catered to their tastes, and Uniqlo also had a low price sister brand in GU.  Just too much for Old Navy to compete.

[spacecadet]

Well it's funny to see that woman say she shops at The Gap, but never at Old Navy. They are the same store! I mean literally, in many cases. And they are owned by the same company.

 

It's just a branding thing. It's probably not that Old Navy couldn't compete, but that it would be too expensive to establish a new brand in Japan when The Gap can handle everything just fine and is already sort of established. Less money to just sell what could have been branded as Old Navy clothes at The Gap instead. Often that's what happens in the US anyway.

Edited May 21, 2016 by spacecadet

[katoftw]

Never heard of them???

[westfalen]

Ironically from the billboards I'm seeing here Uniqlo has just opened a store in Brisbane.

[katoftw]

Uniqlo is in the middle of Qunnes St mall.  There is also a few Daisos spotted around s.e.queensland also nowadays.