The difference in sales between higher-end Gap stores and the company’s cheaper Old Navy brand tells a lot about where consumer confidence is right now, according to Business Insider. BI claims that Old Navy’s strong sales results (seen against Gap’s weak ones) tell us “how broke Americans really are.”
But maybe it just tells us how smart Americans are. Maybe it says that Gap simply doesn’t have the trend appeal to justify its higher prices. (Gap jeans: $69,95; Old Navy: $29,94.) The discrepancy in sales could also mean that Americans perceive the Old Navy brand–with its lively Julia Louis-Dreyfus-driven advertising–as the trendier of the two offerings. It’s certainly making an impression, while the lagging Gap brand seemed to be unwilling to define itself in its latest big campaign.
