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Gap to Open New Clothing Division: Gap Inc. will open 40 stores of a new sportswear division called Old Navy Clothing Co., which will sell their own line of khakis, jeans, sweats and other sportswear. Although the merchandise is similar to the Gap’s, a spokesman said prices will be lower. Three Old Navy Clothing stores will open this month in the San Francisco Bay Area, Gap’s home base. Stores in Southern California, Texas and New York are to be added later this year.