The Rise And Fall of Gap

In late February 2019, Gap Inc. announced plans to split into two separate publicly traded companies, sending its stock soaring on the hopes the new structure will help sharpen its focus and boost sales.

The retailer said it would spin off its most successful brand, Old Navy, into a separate, publicly-traded company. With its inexpensive basics, Old Navy has consistently accounted for more than 40 percent of the company’s total annual sales. Its other brands, Gap and Banana Republic, will join much its smaller brands, Intermix, Athleta, and Hill City, to form an as-yet unnamed company. Gap also plans to buy high-end children’s clothing line Janie and Jack and fold that into the new company.

Despite the sharp spike on the announcement, Gap shares, which have a market value of just under $10 billion, are up less than 1 percent since the start of the year, and have fallen 20 percent over the past year.

Gap CEO Art Peck, who will remain with the executive of “NewCo,” said both companies should benefit from “a sharpened strategic focus and tailored operating structure.”

A Gap spokesperson wasn’t immediately available for comment.

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The Rise And Fall of Gap

[animalover]

As a teen, the Gap has brand recognition, but people only see Gap as the sweatshirts with the big lettering. If they want to capture a younger market, they desperately need to lose that association.

[conqwiztadore]

They should get rid of that fake 40% discount

[limbosvi]

Stop putting GAP in big letters on the apparels, this isn't 1990 anymore.

[hemlockesprings]

Maybe don't put "gap" on every single sweater and jacket

[vahtito]

Anyone else have a *really* hard time understanding that Jim Cramer guy

[wasilaify]

Gap was successful in the 90s because their quality was great in the 90s. Now their quality doesn't withstand a couple washes.

[dimitruajackson]

The quality of Gap went WAY down, but the price went up. Nope.

[Dominickudo]

Gap has not been relevant since 2003, so I'm surprised to see that they lasted this long

[TsetsiStoyanova]

I remember when Gap used to be the $hit back in the day

[kcgunesq]

I'm struck by the fact that the CEO's never seem to be photographed in their companies clothing.

[Nawal]

That's because their clothes are Walmart quality and over priced. I haven't shopped at GAP for years.

[SierraRamblesALot]

Why would I spend $50 on basics at Gap when I can go to H&M and spend $8?

[kirstenmaclellan]

I worked at a GAP store for 8 years... You didn't mention how they sacrificed quality to cut costs. So many time customers complained sweaters weren't 100% wool or cotton, when they cut quality they lost loyal customers who went looking for it somewhere else. Also they literally stock THE EXACT SAME merchandise every year... 8 years of opening shipment, 80 of the new stuff co would be the exact same as the same season the year before... I would literally wear the shirt/blouse I bought 3years before that they would freakin match...

[Jesus-bchw]

it would be sad if it disappears, no one could fill that gap

[natl]

“the younger liberal baby boomers”
Wait what

[alissaride]

I think the 1969 looking Gap would do pretty well in 2019. Definitely looks like something that would attract Gen Z.

[aristotlegoogle]

In summary, Britney Spears single-handedly killed the gap.

[WillKalili]

Banana Republic quality is so low these days. The store always has to offer huge discounts to move products. It's a parody of "luxury"

[Sisa_Limpson]

It's all the same cheap fabric for various high prices. I remember when old navy jeans were durable. Now they want $50 for ill fitting spandex "jeans" or thin cardboard "jeans"

[vinceal-sherifi]

Hollister, Abercrombie and Fitch, and Aeropostale are next!