Owned by Gap Inc., International, fashion retailer Old Navy has more than one thousand stores in the United States and Canada. The Company is dedicated to bringing consumers on-trend apparel, updated basics, and stylish accessories at good value.
Old Navy sought to leverage its customer base and retail footprint into the personal care and home fragrance categories. Looking for a solution that provided speed to market and category competency, Old Navy leadership felt Kelly Kovack was the perfect partner to build this new business. With a reputation and track record of building successful beauty brands, Kovack was charged with analyzing the competitive landscape, and conceptualizing and developing an expansion strategy consistent with the brand’s identity and seasonal goals.
Old Navy’s specialty is apparel design, development and merchandising with seasonal planning and merchandise flows that reflect product to market development timelines for apparel and accessories. Working as an external strategic category lead and concept to counter development partner, Kovack worked within the corporation’s existing infrastructure and in collaborated with the brand’s leadership to integrate the necessary external resources required to launch the category.
The creation and introduction of a beauty category product-to-market process that aligned with the business’s seasonal merchandise flows allowed for seamless integration of personal care and home fragrance product development, production and launch. Seasonal trend presentations and forecasting for beauty that articulated the fashion direction set by Old Navy design leadership ensured brand-right and on trend product that consistently exceeded plan.
The creation of brand-right, value driven product using the levers of quality and compelling design resulted in capsule collections that felt like proprietary brands rather then traditional ‘private label’ product. This formula set the stage for success and established both personal care and home fragrance categories for Old Navy with over 500 SKUs.
Products consistently performed at 80% sell-through and 58% maintained margins and lead to 15% divisional margin increases with the 6 sku ONSCO lip balm becoming the first personal care program to ever be put on 12 month auto-replenish.