Gap’s decline
January 23rd, 2007One of America’s largest retailers is in trouble. After experiencing negative sales growth over the last 2 years, the company has announced management changes and is reviewing its Gap and Old Navy brand strategies (The Gap Inc. includes Gap, Old Navy, Banana Republic and Forth & Towne chains). Rumour also has it that the company is considering a sale.
When was the last time that you bought anything for yourself at the Gap? Unfortunately, it’s been years since I’ve done so and this makes me sad. I’ve always enjoyed the Gap’s consistently good quality and casual all-American style. But their clothing collections have gone from bad to worse. Criticized for having bland apparel for youths, and fashion-forward apparel for baby boomers, the chain seems to have lost its target focus.
Where is Gap’s gap? Perhaps it is that they are no longer the destination store for jeans and t-shirts. The Gap built its reputation and profits on selling the best basics in the business. Perhaps “basic” is the problem. People today seem to want more for their fashion dollar, and they are getting it from stores like Zara and H&M. It is being left behind in spite of the millions it has spent on its celebrity advertising campaigns.
The Gap is definitely having a hard time defining its position within the retail sphere and sales are eroding because of it. Whether it can be rescued remains to be seen. What would you do to save the chain?
January 23rd, 2007 at 11:09 am
I don’t know how I’d save the entire chain, but I would certainly put some more effort into the organization of their stores. The stores always seem like such a mess to me and the jeans area have little rhyme or reason to them. The styles of jeans are often mixed together and sizes are not in order so it makes shopping a frustrating experience instead of a fun, pleasant one. For some reason, I expect Old Navy to be a total mess but I expect the Gap to have everything under control.
It also seems like the Gap doesn’t have the staples I want for very long. Just when I find a t-shirt style that I like, they stop carrying it and the perfect jeans for me used to be easily found there, now they don’t even exist. The Gap Body stuff is great, I think, but there is only a location downtown so just “running in” to buy something is almost impossible.
I still love Baby Gap, though. I can always find something super cute for my daughter there.
January 23rd, 2007 at 11:30 am
If the Gap wants to save itself from ultimate bankruptcy, they need to refocus their design on not just mass producing the basics. Face it–you can get a plain tshirt anywhere. But really, who wants to wear just a plain tshirt anymore? With really amazing designers targeting the broader audience (i.e. Target), the Gap should also reevaluate their designers. Why not be selective in design and run lines by known designers and also new up and coming designers? It may break the mold, but really…are we not finished with the McDonald’s business model? (the same thing over and over again).
We want clothing that is unique, well-made, fun, different–not cookie cutter prototypes that you know you have seen the year before…(and you know that they have just changed to color to call it something new for the season.)
They have the means for production…so why not use it for good design?
January 23rd, 2007 at 12:03 pm
This is music to my ears Jill. This is precisely what I mean when I say that people want more for their fashion dollar and that “basic” might be the problem. Their biz model worked well for decades but something has gone very wrong. They haven’t managed to keep up with the changing needs of their customer. More crucially, the Gap needs to decide who they want to sell their improved designs to. Which age group and which lifestyle ? It will be interesting to see how their clothing ranges will change over the next few months.
January 23rd, 2007 at 12:07 pm
I totally agree with you Stephanie. I still buy for my friends at Baby Gap all the time. Their maternity wear is also usually very good. Their denim and t-shirt ranges leave a lot to be desired and I think that they should concentrate on fixing that area and target it at a specific audience - either youths or baby boomers. They can’t be everything to everyone any more. People have become a lot fussier in how they spend their fashion dollar and there is plenty of competition out there. Basic clothing does not seem desirable anymore. People do not want to look like each other. Zara purposely prevents this from happneing by offering limited quantites per style. If I don’t end up being their new target customer for ladies wear - I know that I’ll still be a loyal customer for their children’s wear!
January 23rd, 2007 at 10:01 pm
“People do not want to look like each other.”
That’s why I can’t bring myself to buy much beyond basics there. If I buy a plain t-shirt there, nobody can tell whether I bought it at Gap, Old Navy, Mervyn’s, Target, or wherever.
And I have this weird thing about not liking to look like the stuff that’s hanging on the racks. Which works in my favor - I never buy anything until the end of the season final clearance!
From the bottom of the fashion food chain,
April 5th, 2007 at 8:01 am
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