![]() We just need to give our customers the quality, fit and style they want. ![]() “It's clear the potential for future growth and penetration is there. Strong sales of shirts with logos on them, a sign of brand health? Huh? What about the lack of interest - for years - in what Gap is selling in the other 95% of its stores’ floor? To me this is a clear sign that the relevance of the brand and even more importantly the strong emotional connection with and pride in the brand like Gap,” Peck told analysts on a February 28 conference call. As challenging as 2018 was, logo sales which to me are an indication of the equity of the brand were up 11% globally. “Our market research strongly supports the view that Gap remains a relevant brand with strong emotional equities. Shoppers now go into a mall, reminisce about the Gap as they walk by a former location, and buy clothing at H&M, American Eagle or any of the remaining department stores.Ī window display at a Gap clothing store is seen Thursday, Aug. In effect, the closings have pushed the brand further back in the recesses of shopper’s minds. Gap has closed hundreds of stores globally over the past five years, yet the brand scarcity that has created in markets hasn’t translated to improved sales. On the heels of another disappointing holiday season, Gap said in late February it would shutter 230 Gap brand stores. The 5% same-store sales drop was worse than the 1% decline seen in 2017. Gap’s global same-store sales tanked 5% in 2018, continuing a stretch of annual declines. If higher tariffs on clothing was the only thing Gap had to worry about. “ is not a solution when you have weak brands that can’t drive traffic,” SW Retail Advisors President Stacey Widlitz said on Yahoo Finance’s The First Trade. But one that Gap has not proven adept at for eons, which calls into question if the brand will even be around 10 years from now. An apparel company - which Gap is unless told otherwise - has to grow sales to stick around. Rather, it’s a short-term elixir designed to hopefully pump up the brand’s profit metrics and grab some investors ahead of a spin-off. More on those efforts will probably be shared when Gap announces first quarter earnings Thursday.īut simply closing stores of an apparel brand that probably can no longer consistently grow sales (if at all) isn’t a long-term savior. Spin off Old Navy and keep on closing underperforming Gap stores. Next up: quickly digging the six-foot hole.Īfter years of product miscues, weak sales and pressured margins at the hands of rising online apparel competition and mall rents, Gap management has settled on a strategy to “fix” what ills the once iconic brand. The Gap ( GPS) brand is working on its headstone.
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