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In March 1994, Gap Warehouse was renamed Old Navy Clothing Co. in order to establish a separate image from its parent. It was named after a bar in Paris. The new stores were about 15,000 square feet (1,400 m2), compared less than 10,000 square feet (900 m2) for Gap Warehouse stores. On March 11, 1994, the first Old Navy locations opened in the northern California towns of Colma, San Leandro and Pittsburg According to Kevin Lonergan, Gap's director of stores, Old Navy stores were intentionally designed like grocery stores, with flowing aisles, shopping carts, and small impulse items near the checkout counters. The cement floor, metal shelving, and checkout counters built from polished pressed board and galvanized metal gave the stores an industrial warehouse feel, while the colorful arrangements and large number of employees working set it apart from other discount clothing stores. Later that year, 42 other Old Navy stores opened, and most of the 45 Gap Warehouse stores were renamed Old Navy.

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