fashion therapy

Gap Revitalizes Brand To Regain Market Share

Posted by Barry Silverstein on October 19, 2009 05:45 PM

Gap hasn't had an easy time of it, and not just because of last month's death of founder Don Fisher, who opened the first Gap store in 1969. The clothing retailer, which owns Gap, Banana Republic, and Old Navy, has suffered through years of declining sales and several executive changes. Only Old Navy, Gap's value-priced brand, has seen a sales increase this year.

Still the leading U.S. clothing chain, Gap has been accused of missing the mark when it comes to keeping up with contemporary fashion trends. Even Banana Republic, Gap's upscale brand, is now regarded by company officials as being "too serious" and "too heavily work-focused," MarketWatch reports.

Gap has always seen benefits from globalization. It was opening stores in Europe as early as the 1980s. The chain currently has over 3,000 stores in the the U.S. and Canada, as well as in the UK, France, and Japan. But, says The Times of London:

...the company has been cutting costs and streamlining stores over the past two years. A recent high profile campaign at Gap, which was focused around the launch of a premium jeans line, fell flat.

Don't count Gap out quite yet. Next month, the company will revive its television advertising in the U.S. for the first time in two years, and MarketWatch reports, it will expand outlets overseas, including China for the first time, and begin online sales in Canada and the UK.

Will it be turnaround time for Gap -- or will the latest strategy be Gap's last gasp?

Comments

Mark Gallagher United States says:

The Gap has repeatedly mistaken advertising for brand strategy, and it appears they are at it again.

Mark Gallagher
Brand Expressionist®
Blackcoffee

October 19, 2009 07:09 PM #

Daryl Forkell United States says:

The Gap's recent premium denim push fell flat because no one believed them.

The Gap doesn't deliver products that support the brand promises they make in ad campaigns. And their in-store experience leaves much to be desired. Which makes it a double disappointment when a consumer actually makes the effort to respond to their advertising.

They have decades of resources and experience on their side. Hopefully they'll find (and follow) the creative leadership that can help them align their brand image with their goods and services.

October 20, 2009 09:38 AM #

Managed Funds United States says:

Active managed funds traders in the US have viewed the downturn in Gap's performance over the past two years as another example of a depressed economy, but those who rely on strong performance from a segment leader like Gap will have to re-think their positions given the retail giant's inability to recover.

February 4, 2010 07:45 AM #

business for sale brisbane United States says:

Nice job, it’s a great post. The info is good to know!

March 4, 2010 08:23 AM #

business from home United States says:

Useful info. Hope to see more good posts in the future

March 4, 2010 08:29 AM #

business consultants United States says:

Interesting read, thanks for helping keep me busy at work ;)

March 12, 2010 03:03 AM #

Comments are closed

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