Old Navy, Gap Inc.’s biggest brand, struck a deal for a new 55,000-square-foot flagship store in Herald Square, the top retail lease in New York City so far this year, according to research from real estate brokerage Newmark Group, which advised on the brand’s deal.
Located in a key Midtown shopping district, the new location will be steps away from the Macy’s Herald Square department store that serves as the backdrop to the Macy’s Thanksgiving Day Parade.
Old Navy’s new store will be two floors and is set to open next year. It will close its 150 West 34th Street location, and employees who worked at the store are able to apply to the new location, according to a spokesperson.
“This new location will enable us to deliver a fresh, immersive, digitally led experience,” said Haio Barbeito, Old Navy’s president and chief executive officer, in a statement. The brand is looking to modernize its customer experience, he added.
While the pandemic weighed on Manhattan’s retail tenants, the city’s shopping corridors have started to bounce back. Luxury brands went on a buying spree for properties along Fifth Avenue, and major brands such as Ikea have unveiled plans for new retail spots.
Apparel companies were the second-most active sector for leasing Manhattan retail space during the first three months of the year, snagging more than 148,000 square feet, according to a CBRE Group Inc. report. Miu Miu renewed its spot on 57th Street, and Mango said it’d open a store at 1976 Broadway, CBRE said.
Gap has been updating a number of its stores under top executive Richard Dickson, who became CEO in August 2023. The namesake Gap brand recently reopened a store in the nearby Flatiron district of Manhattan and its Banana Republic brand renovated its flagship in Soho.
Gap reported strong quarterly sales in its most recent earnings report in March. Its other brands include Athleta, its athletic label for women, and Banana Republic. Gap’s shares are down 2.6% so far this year as of the close of trading on Thursday.
