Gap Group'S Closing Down And Layoffs' Redemption Road

Last year, the Gap brand's same store sales fell by 5% on a global scale, while the OldNavy brand's same store sales increased by 5% compared with the same period last year, while the BananaRepublic brand remained unchanged.

For Gap, this Monday is a dark day, because the US $16 billion old American casual wear company has started a lot of shops and layoffs: it will close 175 stores in North America in the next few years, which accounts for 25% of the total number of stores in North America, and only 140 will be closed this year.

After the implementation of this measure, the number of Gap stores in North America will be reduced from 977 to 800, including 500 stores and 300 outlet stores.

But Gap will remain in more than 50 countries, more than 1600 direct or authorized stores worldwide.

On Tuesday, Gap group CEOArtPeck said the aim was to reverse the decline of its brand Gap and BananaRepublic, and the following strategies were implemented:

Quickly set up a new management team for the two brands and form a new design style.

Better mutual cooperation among brands;

The Gap brand focuses on female customers aged 25-35.

The BananaRepublic brand will give priority to the development of clothing such as self-cultivation clothing, knitwear, bottoms and outdoor clothing, so as to reduce sales promotion activities.

He admitted that the measures that would be used to shut down the store would lead to a decline in market share, and admitted: "although some consumers may turn to our competitors, these measures will make the store better position itself, and also reduce the workload of Jeff."

(JeffKirwan is the global president of Gap brand)

He said: "we have always focused on physical stores, so it is not that there will be no further action. We will open or close shops in the right place in the future."

Peck said: "the first task of Gap is to create a team of tacit cooperation. Our mistake over the years is to put the responsibility of running a brand on the shoulders of every individual.

We need someone who is excellent.

We need talented people, but we need a highly collaborative team. "

Last week, Gap was dug in Uniqlo (UNIQLO).

StevenSare, PacSun and BananaRepublic, served as senior vice general manager of global sourcing; AlessandraBrunialti, who worked in Alice+Olivia, Vince, CalvinKlein and BananaRepublic, served as vice-president of women's wear design.

Sare will collaborate with Gap's overall procurement process with Gap product design and development executive vice president WendiGoldman.

JeffKirwan, chief executive of global brand, said that Gap's team has a unified understanding of the beauty of products, so any product produced by Gap "will not appear in shops if it is not screened by the team."

Peck called BananaRepublic "the problem is improving".

He said he was very proud of this brand, but "not satisfied with the performance of the brand in recent years, especially its women's clothing business".

In a promotion, Peck said: "brand value is very important for the entire Gap group. Brand value can not be hit 40 percent off every time, but we have too many 40 percent off promotional activities every day."