Old Navy, as forecasted, went into review
Steve’s breakdown: Last month we made sure all our members knew we thought either The Gap or Old Navy would go in review. And now it’s just been announced Martin has won Old Navy. (Our forecast is at the bottom of the page)
Gotta keep an eye on our Account review predictions!!
SAN FRANCISCO, CA: The Martin Agency has been named Old Navy’s creative advertising agency following a review.
The retailer has not shared any details about its decision, but said the Richmond, Va.-based agency’s first campaign for the brand will break in May. A spokesperson for the brand said that Old Navy always has “and will continue to” work with a roster of agencies.
The appointment is the latest in a series of wins for The Martin Agency, which recently brought on Elizabeth Paul as chief strategy officer. In the past year, the IPG-owned shop has won creative duties for accounts including CarMax, Twisted Tea, UPS and DoorDash.
According to Kantar Media, which doesn’t track spending on social media channels, Old Navy spent $82 million on measured media between January and September of last year.
Earlier this year, Old Navy’s parent company Gap Inc. abandoned its plan to spin off the retailer into a separate public company, which had been in the works for nearly a year. At the time, interim CEO Robert Fisher said the work Gap Inc. had done to prepare for the spinoff “shone a bright light on operational inefficiencies and areas for improvement.”
Art Peck, former CEO of Gap Inc., was fired in November because of his failure to spur growth for the company’s portfolio of brands, which also includes the Gap and Banana Republic. In November, Old Navy’s same-store sales were down 4% for the third quarter compared to the same period the year prior. Gap and Banana Republic posted negative sales growth for the quarter as well.
During the company’s third-quarter earnings call, Gap Inc.’s chief financial officer Teri List-Stoll said Old Navy had “frankly become too heavily dependent on messaging around discounting as opposed to bigger picture brand messaging, focusing on product and value that we know resonates with the Old Navy consumer.”
In recent years, Old Navy has worked with Chandelier Creative on a number of campaigns. After creating spots starring celebrities including Julia Louis-Dreyfus and Amy Schumer, the retailer shifted focus a few years ago via an effort called “Hi, Fashion.”