3 Reasons Why Old Navy Does the Flag Collection Every Year

July 6, 2023

Introduction

Updated: Nov 15, 2024

Another 4th of July has come and gone. For my family, this year’s festivities were filled with traditions from my own childhood:

✅ Neighborhood Parade

✅ Poolside Festivities

✅ Giant BBQ

✅ Hanging with Family & Friends

✅ Matching Old Navy Shirts

Yes, you read that correctly.

This year, we thought it would be a fun idea to get matching shirts. We aren’t typically the matchy-matchy type of family, but figured it would be worth the picture while our little guy is still little.

I got the idea for matching shirts last minute and didn't have a lot of time for planning. Pretty quickly I remembered the matching Old Navy 4th of July t-shirts my mom would buy us every year. For less than $10 total the shirts worked perfectly and the picture above is the proof!

Sitting here soothing my annual Independence Day sunburn I started to think about this shirt. Why does Old Navy sell a shirt for what it costs them to make every year?

Here are the 3 lessons I learned from Old Navy this year:

1. Learn to Use Loss Leaders!

The price blew me away. I anticipated we’d pay $25-30 for our 3 shirts. Our total bill (with tax) came out to $8.20. That’s it!

After spending only $8, it seems reasonable to continue shopping and browse the rest of the store’s selection. This gives Old Navy the opportunity to sell more products to these holiday customers, increasing their average order value.

This is a great way to get foot traffic into their stores in a world where competition has never been higher.

2. Cross-Team Collaboration

When we went to buy our shirts (granted - it was on July 3rd), we noticed that the options were slim. The giant rack that was once completely full, was down to the scraps. Thankfully we managed to find a matching shirt that would fit each of us and secured the photo op.

We were less than a day from the 4th of July and it seemed as if there was exactly the right amount of merchandise remaining. They knew exactly how much inventory to hold. The marketing team and supply chain teams were working in lockstep with each other.

Too many marketing campaigns fall short because different teams refuse to collaborate.

3. Don't Undervalue a Branding Opportunity

In the middle of every summer, Old Navy draped families show up on our social media feeds. This gives the brand millions of free impressions that would otherwise cost a fortune.

Old Navy stands out each summer because they make these family-friendly shirts easy for everyone to access. With more than 1.7 million posts on Facebook every minute, it’s important to do whatever we can to stand out!

Want to learn more about how your brand can stand out on social media? Check out this blog by my co-founder, Chandler Lyles!

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