Gap Inc. announced Thursday that it will split itself into two companies — Old Navy as a standalone storefront, and Gap, Banana Republic, Athleta and its other brands together as a separate business. (It’s yet to be named, though the obvious name would be ... Gap.)
Why it matters: This could finally make shareholders happy. Gap Inc. has been struggling to balance its successful Old Navy retailer (alone, it has $8 billion in annual revenue, nearly as much as the others combined) with the rest of its brands, including namesake Gap, which has struggled in recent years.