Old Navy Gets a New CEO, Walmart Widens Restaurant Delivery & Your Labor Day Weather Report

Hello, everyone. This is OmniTalk Retail. I'm Chris Walton, and you are listening to the Retail Daily Minute, your quickest, fastest breakdown of all the day's top retail news. Today's podcast is brought to you once again with the help and support of R&S Logistics. Are you looking for a fulfillment and distribution partner? That's just right. Well, RNS Logistics is small enough to provide custom solutions and that personal touch, while also still boasting 2 million square feet across 10 locations in the Southeast. With technology that can scale your growing e-commerce operations, visit rswarehousingsolutions.com and get your quote today. And I'm also pleased to introduce Zenline AI because you have likely heard about AI agents a thousand times this year. They're also probably wondering what they can do for you as a retailer. Visit tryzenline.ai to book a call and see how agents can bring you more margin. This morning, we've got news on Walmart pushing restaurant delivery beyond Subway and a Labor Day weekend retail weather report. But we begin today with a shakeup at Gap Inc., where Old Navy just posted its first negative same-store sales quarter since 2023 and picked up a new CEO in the process. Gap Inc.'s overall numbers actually looked fine on the surface. Earnings beat estimates, operating income more than doubled to $676 million, and the company raised its full-year EPS guidance. But dig one layer down, and it's really a tale of two companies wearing one ticker. The Gap brand itself was up 10% on comps, Banana Republic up 3%, while Old Navy fell 4%, and Athleta dropped 12%. CEO Richard Dixon is calling Old Navy's stumble a seasonal assortment miss, pointing to poor performance in swim, shorts, dresses, and what he also called a, quote, unanticipated, end quote, traffic slowdown. And he also simultaneously announced that Michael Francis, fresh off two months as chief customer officer, will take over as Old Navy's CEO effective November 2nd. Dixon called it a, quote, planned and thoughtful transition, end quote, which maybe that is the case, but no doubt it is a stumble that Dixon probably didn't want to see happen amid what had been a turnaround that was firing on all cylinders.

Someone on your operations team is likely copying and pasting data between systems right now. So why not just let Duvo do that work instead? To learn more, visit duvo.ai. That's D-U-V-O dot A-I.

all right we are back and next up is a story straight from walmart's own executive team walmart svp greg kathy published a linkedin post touting the expansion of restaurant delivery beyond in-store subway locations now reaching restaurants outside walmart's four walls entirely yes you heard that right the headline stats i took note of from his linkedin post are as follows One, nearly 65% of restaurant orders since launch also included Walmart items. And two, one in five orders combining Subway and Walmart purchases was a customer's first time ever using express delivery this year. With three, almost 30% of those new users coming back within 30 days. Those are genuinely strong engagement numbers. But it's worth remembering, it is worth remembering, this is a company blog