7 Major New Moves: How Old Navy Is Redefining Retail In 2025 (Beauty, Disney, & NYC Flagship)

The retail landscape is shifting dramatically, and Old Navy, the largest brand under the Gap Inc. umbrella, is not just keeping pace—it's driving the change with a series of aggressive and exciting new initiatives set for 2025. This year marks a significant pivot for the value-focused clothing giant, moving far beyond its traditional denim and casual wear to become a true lifestyle destination. The strategy is clear: capture the attention and wallet share of Gen Z and millennial shoppers through bold physical expansion, surprising collaborations, and a brand-new foray into the lucrative beauty market.

As of late 2025, the brand is leveraging strong comparable sales growth, which was up 6% in the third quarter, to fuel this ambitious expansion. The focus is on creating buzz, increasing topical authority, and solidifying its position as the go-to source for affordable, family-friendly style. The following deep dive outlines the seven most critical and current developments that are redefining the Old Navy brand right now.

Old Navy's Aggressive 2025 Strategy: Flagships, Financials, and Future Growth

Old Navy’s parent company, Gap Inc., has laid out a clear path for its biggest brand, focusing on strategic growth areas that maximize both physical presence and digital engagement. The financial results from fiscal 2024 and the outlook for 2025 show a brand with momentum, despite a slight dip in Q4 net sales to $2.2 billion (down 3% year-over-year). Crucially, comparable sales rose by 3% in that same quarter, indicating that core customer engagement remains robust.

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1. The Blockbuster NYC Herald Square Flagship Store

In one of the biggest retail real estate moves of 2025, Old Navy secured a deal for a massive new 55,000-square-foot flagship store in New York City’s iconic Herald Square. This is more than just a store opening; it's a powerful statement about the brand's commitment to physical retail and its desire to compete on the grandest stage. Situated in a high-traffic area, this flagship is designed to be a major brand experience, showcasing the full range of its collections, from new activewear lines to the soon-to-be-launched beauty products. The investment underscores the importance of a prominent, experiential store footprint in the post-pandemic retail environment.

2. Launch of 'Old Navy Beauty Co.'

Perhaps the most unexpected and significant development is the launch of Old Navy Beauty Co., set for a pilot expansion in late 2025. This initiative sees Gap Inc. making a major play in the $100 billion U.S. beauty market, starting with a curated, affordable product line in approximately 150 Old Navy stores. The offerings will focus on skin care and make-up, specifically targeting the price-sensitive yet trend-aware Gen Z and millennial demographics. By placing beauty sections near the cash registers, Old Navy is strategically aiming for impulse buys and positioning itself as a complete lifestyle destination, not just a clothing store.

3. The 'First of Its Kind' Disney Collaboration

Old Navy is kicking off Summer 2025 with a major partnership: the Old Navy x Disney collaboration. Launching on May 14, 2025, this collection is being touted as a "first of its kind" and features beloved, iconic Disney characters such as Mickey Mouse, Minnie Mouse, Goofy, and Pluto. Such high-profile collaborations are a key strategy to drive foot traffic, generate social media buzz, and appeal to the family market, which is a core strength for the brand. The collection is expected to span apparel for all ages, cementing Old Navy’s reputation for fun, accessible, and nostalgic fashion.

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4. Elevating Style with the Anna Sui Designer Collaboration

Further reinforcing its commitment to style and trend relevance, Old Navy recently launched its first-ever designer collaboration with the renowned fashion icon, Anna Sui. This partnership introduced a range of products priced between $19.99 and $119.99, making high-fashion design accessible to a broader audience. The success of the Anna Sui line has helped reposition Old Navy as a legitimate style destination, capable of offering curated collections for every moment and milestone in a customer’s life.

Marketing and Digital Innovations Driving Customer Engagement

The brand’s recent marketing efforts are just as dynamic as its product strategy. Old Navy is focused on creating a 360-degree world for its customers, blending celebrity power with digital convenience to maximize reach and conversion.

5. The 'Old Navy, New Moves' Activewear Campaign

For Summer 2025, Old Navy launched the "Old Navy, New Moves" campaign to support its expanding activewear line. This campaign is a masterclass in blending nostalgia with current trends, featuring a celebrity comeback from Lindsay Lohan in '80s-inspired marketing. The strategy repositions Old Navy in the competitive activewear space by combining celebrity appeal with the influence of Gen Z creators. The campaign highlights exciting new product lines and a world of fun and flair, signaling a serious push to be a contender in the performance apparel market.

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6. On-Demand Delivery Partnership with DoorDash

In a move to enhance customer convenience and compete with fast-fashion e-commerce, Old Navy partnered with DoorDash in November 2025 to offer on-demand delivery. This service allows shoppers to get their favorite items—whether it’s a last-minute outfit for a party or a cozy pair of pajamas—delivered quickly. This digital innovation is crucial for meeting the expectations of modern shoppers who prioritize speed and ease, integrating the physical store inventory with a seamless digital fulfillment process.

7. Fall 2025 New Arrivals and Trend Focus

The product pipeline for the remainder of 2025 is robust, with the Fall 2025 new arrivals generating significant buzz. The collections feature budget-friendly finds across key categories, including stylish tops, essential jackets, a refreshed denim line, and seasonal boots. By consistently introducing fresh, trend-right inventory, Old Navy maintains high customer interest and encourages repeat visits, both online and in-store. The focus remains on providing value without sacrificing style, a winning formula that resonates deeply with its core customer base.

The Future: A Complete Lifestyle Brand

The collective impact of these seven major initiatives points to one clear goal: Old Navy is evolving from a casual apparel retailer into a complete, multi-category lifestyle brand. The strategy is built on key pillars: Accessibility (affordable pricing), Reach (Herald Square and DoorDash), Innovation (Old Navy Beauty Co.), and Buzz (Disney and Anna Sui collaborations). By targeting the lucrative beauty sector and doubling down on experiential retail and digital convenience, Old Navy is not just surviving but thriving in a challenging market, solidifying its position as a powerhouse of accessible fashion and lifestyle goods for families across North America.