Can Amazon Save Gap?
Can Amazon Save Gap?
The Gap, Inc. or colloquially known as ‘Gap’, was founded by Donald and Doris Fisher in San Francisco in he late 70s. The brand has been a global success, expanding over the years to now include Banana Republic, Old Navy, Intermix and Athleta – remaining the largest specialty retailer in the US.
However, come a 30 percent share value loss over the new year, the brand has certainly seen better days. A combination of falls in in-store sales, as well as on apparel spending altogether, could mean that the futures of many store-based retailors will suffer from the shift to online shopping that many of us have made.
In light of this fact, it remains up to newly appointed CEO Art Peck to take the reigns and reboot sales. In the company’s annual investor meeting on Tuesday in San Francisco, he stated: ‘We are always considering all of the opportunities beyond our traditional mix of channels and stores’ and that ‘to not be considering Amazon and others would be – in my view – delusional.’
Amazon.com Clothing Page
It seems that Peck is taking a leaf out of Amazon.com’s book when it comes to exploring non-traditional channels. The e-commerce company based in Seattle has shown a huge growth in popularity and has expanded into multiple areas of retail, from books to bicycles. Despite arguments against the capitalization of markets that Amazon has made, Peck seems to have undertaken an ‘If You Can’t Beat ‘em, Join ‘em’ attitude.
With Amazon set to become the No. 1 US apparel retailer by next year (according to Cowen & Co.), Gap could be the first major retailor – but certainly not the last – to jump on the Amazon bandwagon.
Can Amazon Save Gap?
