![]() ![]() ![]() This additional resource has been used to beef up personalization capabilities and to build out loyalty program plans: This was launched at Old Navy - under Syngal - back in 2018, then extended out to Banana Republic and Athleta in 2019, before finally being offered across the entire group during 2020, cutting it fine for the boom in online shopping and customer collection that the pandemic fuelled.īut there are wins to point to, insists Syngal, citing an expanded client database of 183 million names, up 14% year-on-year as customers provided more personal data to access and use online services. There are areas of the online business where for all Peck’s earlier boasts, tech-enabled capabilities have rolled out at a slower pace than they might usefully have done.īuy Online, Pick-up In Store (BOPIS) is a case point. As noted above, there’s still a lot of work to be done on that front. is uniquely advantaged to win in digital. Number two in the US apparel e-commerce sales of $6 billion, we believe Gap Inc. Following the shutdown, we re-opened our fleet of more than 3,000 stores quickly, while permanently closing a group of over 200 unprofitable stores as part of our fleet rationalization strategy. We've met our customer's e-commerce shipping expectations at scale with on-time delivery of approximately 130 million products, well above the industry average…Powering our brands is the strength of our platform and capabilities at scale. ![]() Our online business reached over $6 billion in sales and delivered 54% annual sales growth, leveraging our powerful omni-channel platform. Still, for her part, CEO Sonia Syngal, herself a former e-commerce champion at Old Navy, inevitably spins a glass half full: But Gap itself continues to struggle and when it comes to Banana Republic, well….Īs for the omni-acceleration seen in other parts of the retail sector, Gap’s major landmarks coming out of a COVID-hit industry appear to be shuttering another 228 Gap and Banana Republic physical stores and becoming a market leader in selling face masks, now accounting for three percent of total sales. Old Navy remains the most enduring success story, now the number two apparel brand in the US after Nike, while the star performer emerging from the pandemic has been Athleta, a clear beneficiary of the lockdown boom in ‘athleisure’ clothing seen elsewhere. It’s not that there hasn’t been an understanding of the importance of developing omni-channel capabilities or a willingness to embrace tech - former CEO Art Peck at one point was declaring the firm to be in the same mold as the Silicon Valley businesses further down Highway 101 in terms of its technophilic DNA.īut the end result has remained patchy and the various brands across the group are all in different places. So that’s good, yes? Well, up to a point, but the Gap Inc story remains a lot more fragmented than that digital growth rate.ĭigital transformation efforts at the group over the past few years have been a series of ups and downs and hits and misses, depending on which part of the brand portfolio you’re looking at at any given time. Online sales as a whole rose 54% and now account for 45% of total revenues, up from 25% a year ago. Overall, full year losses for the group were $665 million for 2020, down from a profit of $351 million in 2019, on a 15.8% year-on-year revenue decline. It’s a bold ambition and based on its current performance, one that’s going to need considerable work to achieve. US retail institution Gap Inc has a plan to derive half of its total revenues from online within two years. ![]()
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