GAP Inc. reports 7 % decline in sales during the last quarter

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 shoppers.

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 yearly basis.

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 offering discounts.

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.


 

 

 

 

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