Shopping Tips Online

In 1969 Nixon was inaugurated president, the Mets beat Baltimore in the World Series and Midnight Cowboy won Best Picture and Neil Armstrong walked on the moon. Oh yeah, and the first Gap store opened in San Francisco.

Thirty-seven years later, we’re asking the question. Is the Gap still relevant?

In one of my previous articles I reported about the Gap’s holiday advertising, and the confusion it was causing among consumers. Fifteen year olds liked the hip-hop music but not the clothes, older consumers (like me) didn’t get either the ads or the clothes. While the commercial was popular, same store sales were tanking over the holiday season. The company reported a 4% drop in net sales for the five-week period ending December 30th compared to the same period in 05.

Now, the Gap is suffering from a major identity crisis, as this Washington Post article points out.

A 24-year-old shopper was quoted as saying, “I used to shop there, like, all the time when I was younger,” she said. But lately, “I haven’t really seen anything there that has jumped out at me.”

That’s been my experience, even though I am…ahem… slightly older. I love the Gap. I grew up with the Gap. It was cool stuff in a modern-slash-classic way. Back in the day, I used to wear their men’s jeans exclusively – I could get the length I needed, and they were just the right shade of blue. And that was super-cool. But I have noticed that now, more often than not, I leave the Gap without a shopping bag. The stuff is just too… I don’t know, young? Strange? Trendy? Have I fallen through the Gap?

The “Simple Idea�?

Don Fischer, founder of the Gap said, “I created Gap with a simple idea: to make it easier to find a pair of jeans. We remain committed to that basic principle.�? He stepped down as the company’s chairman of the board in 2003.

Poor Don. I think the current management has lost sight of his founding principle. Case in point. Women’s jeans: Fashion denim, boot cut curvy, boot cut original, flare curvy, flare long & lean, flare original, straight boyfriend, skinny fit, classic fit, reverse fit and cropped jeans. That’s eleven different fits. And the “fashion denim�? category has a dizzying array of jeans like drawstring, trouser cut, cargo… the list goes on. I can’t even go back to men’s jeans because it’s just as confusing. Slim, straight, loose straight, boot, loose boot, industrial, easy, relaxed, baggy and carpenter – ten styles of men’s jeans.

How is this making it easier for me to find jeans? It’s not simple. It’s frustrating and confusing. The company says the Gap brand stands for “iconic American style for customers of all ages.�? I think this may be a leftover brand positioning statement from an era when they actually knew who they were.

Time to Close the Gap?

Sadly, I just spent an hour walking around in our nearly-empty Gap, Gap Kids and Gap Body stores – they are closing this month. And they’re not the only closings coming. For 2006 Gap estimated opening 35 new Gap North America stores (U.S. and Canada), and closing 85. At the same time, they estimated opening 85 new Old Navy stores, while closing only 20 and opening 40 Banana Republics while closing only 10. Store closings are not always tied to performance, but in the case of recent closures, I would guess that low sales were more often the reason than not.

There are rumors circulating that the company is going on the block. No one from Gap will comment. However, they will admit that they are doing whatever it takes to turn the company around, and have hired Goldman Sachs to do a survey of both Gap and Old Navy brands. Paul Pressler, president and CEO of Gap Inc. said, “Given that we did not gain the traction we had expected, the management team, with the active involvement of our board of directors, is currently reviewing Gap and Old Navy’s brand strategies. We are committed to making the necessary changes to improve performance.�?

I’m Not Giving Up On You, Gap

Dear Gap: I know you didn’t ask me. But I am a consumer, a long-time customer, and I read and write about the retail business. So, I may not be qualified to address your financials, but I do have thoughts about what you could do to re-capture some of what you’ve lost. Here are my ideas:

1. “Rediscover�? yourself. Kids consider the Gap “what moms wear,�? but moms look at the stuff on the rack and think it’s “what kids wear.�? It’s confusing. Your image isn’t keeping up with your stuff, but does anyone really like the new stuff? Find out. If you don’t know what you are, ask. Consumers will tell you.
2. Don’t be all high-falutin. Bring the prices back in line. Your clothes are not expensive enough to be “chic,�? but you’re not cheap enough to be “cheap-chic.�? (How’s that for a tongue-twister?) As a consumer I expect your price to reflect your quality – better than Old Navy but not as good as Banana. That’s where you fit. Don’t cross the line.
3. Don’t name drop unless you have to. If you must use celebrities, use the right celebrities. Tom Ford recently said that he doesn’t see celebrity advertising going away any time soon. So if we’re stuck with it, then choose celebs that make sense with the brand. Remember “Individuals of Style?�? Remember James Dean in khakis? Go there.
4. Make it easier to find a pair of jeans again. Don’t disappoint your founder. Listen to him! There are a lot of trendy jeans and crazy fits out there at every price point. Remember when Gap = jeans? Give us jeans that fit and don’t make our heads spin. Basic is good.

Those are four things to start with. There are probably many more. Hopefully they just got a bit off course and will find their way back into the hearts and closets of people like me, who don’t want to give up on the Gap.

Gap, Gap Brands, Old Navy