Gap's same store sales have been down every month in 2009, indicating that either the Gap customer base, or the price that American consumers are willing to pay for Gap fashions is declining. After Gap posted a decline in its November same store sales for the fifth year in a row, it might be safe to assume that both Gap's customer count and price tolerance have been on the decline for some time.
The economy is the easy excuse for Gap's 2009 sales woes, but competitors like H&M, Zara, and Topshop have operated in the same economy with more positive results. Gap's struggles seem to be with the fundamental right-product-right-price formula.
For the first time in three years Gap used television advertising to help boost its 2009 holiday sales. In fact, its holiday campaign appeared in its stores well before Thanksgiving. The early holiday debut, though, drew the wrong kind of attention to the chain. On November 13, the American Family Association called for a boycott on Gap stores, as well as its Old Navy and Banana Republic brands, because their holiday ads didn't have enough "Christmas" verbiage to suit the conservative Christian activist group.
Another holiday advertising miscalculation occurred when a holiday Gap print ad featured several models wearing the same pair of lug-sole, high-healed hiking boots which the Gap did not sell in its stores. As a result, Barneys Co-Op got a gift in its holiday shopping season stocking courtesy of a Gap advertising stylist who didn't think it was important to advertise what you sell and sell what you advertise.
Despite its stumbles in 2009, the Gap made some definite forward progress in the area of social responsibility. The chain received recognition from the EPA Climate Leaders program for reaching its greenhouse gas emissions reduction goals. Gap was also one of 900 companies worldwide that signed Prince Charles' "Copenhagen Communique," committing to an 85% cut of carbon emissions by 2050.
Perhaps the Gap's environmental actions and its community involvement made it attractive to socially responsible investors, and can help explain the 49% lift in its stock prices. Or perhaps investors are just wagering that in 2010 the Gap will finally figure out a way to fill in its retail gaps.
More Gap Inc. 2009 News:
The economy is the easy excuse for Gap's 2009 sales woes, but competitors like H&M, Zara, and Topshop have operated in the same economy with more positive results. Gap's struggles seem to be with the fundamental right-product-right-price formula.
For the first time in three years Gap used television advertising to help boost its 2009 holiday sales. In fact, its holiday campaign appeared in its stores well before Thanksgiving. The early holiday debut, though, drew the wrong kind of attention to the chain. On November 13, the American Family Association called for a boycott on Gap stores, as well as its Old Navy and Banana Republic brands, because their holiday ads didn't have enough "Christmas" verbiage to suit the conservative Christian activist group.
Another holiday advertising miscalculation occurred when a holiday Gap print ad featured several models wearing the same pair of lug-sole, high-healed hiking boots which the Gap did not sell in its stores. As a result, Barneys Co-Op got a gift in its holiday shopping season stocking courtesy of a Gap advertising stylist who didn't think it was important to advertise what you sell and sell what you advertise.
Despite its stumbles in 2009, the Gap made some definite forward progress in the area of social responsibility. The chain received recognition from the EPA Climate Leaders program for reaching its greenhouse gas emissions reduction goals. Gap was also one of 900 companies worldwide that signed Prince Charles' "Copenhagen Communique," committing to an 85% cut of carbon emissions by 2050.
Perhaps the Gap's environmental actions and its community involvement made it attractive to socially responsible investors, and can help explain the 49% lift in its stock prices. Or perhaps investors are just wagering that in 2010 the Gap will finally figure out a way to fill in its retail gaps.
More Gap Inc. 2009 News:
- Gap's Sales Disappointments
- 2009 Store Closings for Gap Inc.
- Gap's Black Friday Pre-Emptive Strategies
- 2009 Store Openings for Gap Inc.
- Gap's Green Governance
- Green Rankings & Gap Inc.
- Gap CEO Compensation
