Sales of Gap brand witnessed a fall of 7 per cent in the
last quarter, as the US-based brand failed to re-engage its
However, the overall sales of Gap, Inc. saw an increase of
6.5 per cent to reach US $ 4.09 billion mainly owing to the
consistent performance of its namesake brand Old Navy.
Similarly, Banana Republic, another subsidiary brand of Gap
Inc. also recorded a 2 per cent growth.
It is important to note here that the net income too soared
up to US $ 266 million, marking a jump of US $ 37 million on
The Gap brand, in particular, has been going through a rough
phase. Elucidating on the same, Neil Saunders, MD, Global
Data Retail, said there is nothing new or exciting coming
from Gap and the brand is now trying to sell products by
He further added that consumers have started seeing Gap as
irrelevant in the apparel space and lot of work still needs
to be done for the brand.
While Old Navy has been able to win customers through its
well-curated collections, Banana Republic too is being
talked about for its impressive fall and winter collections.
An in-depth analysis accompanied by a well-executed business
strategy is prerequisite for the revival of Gap today.