Old Navy Ends Plus Size Women’s Clothing Sections | national news
The move makes financial sense for Old Navy, Stickney said, and “is one of the main pieces of the puzzle” in meeting the brand’s goal of reaching $ 10 billion in annual sales by 2023, against $ 7.5 billion in 2020.
Old Navy said searches for “more” on its websites had increased 63% in the past year and pointed to data from NPD Group showing the market for plus size women’s clothing was 20.4% billion dollars in June.
“This is especially lucrative for a retailer like Old Navy which has a wide range of consumers of all shapes and sizes,” said Neil Saunders, managing director of GlobalData Retail, in an email. “For Old Navy and other traditional players, I think they see an opportunity for growth in a part of the market that they are not serving very well.”
The redesign comes with challenges, however.
Adding sizes increases manufacturing complexity and costs for retailers, Saunders said. More fabric is used when producing extended sizes and additional design and manufacturing expense may come into play in the process. Women’s clothing brand Loft, for example, launched into plus size clothing three years ago, but recently turned the tide “due to ongoing business challenges,” the company noted in March.
To be able to keep prices low and the same for all sizes, retailers need to purchase significant volumes of clothing, said Elizabeth Shobert, director of marketing and digital strategy at fashion analysis firm StyleSage.