Gap Inc
Gap Inc
Basic Information:
Gap Inc. world headquarters offices are based in the San Francisco Bay Area and their product design offices are located primarily in New York City, San Francisco and London. They also have offices around the globe to support our store management, distribution and product manufacturing operations
Gap Inc. operates more than 3,100 stores worldwide. They have stores throughout the United States, as well as in Canada, the United Kingdom, France, Ireland and Japan.
They employ more than 150,000 employees around the world.
Mission Statement:
Gap Inc. was founded in 1969 on the principle of conducting business in a responsible, honest and ethical manner. Today, Gap Inc. remains committed to meeting the highest standards of business conduct. Nothing less will do.
We make this commitment to our shareholders, customers, neighbors and each other not only out of legal obligation, but because its the right thing to do. Gap Inc.s success depends on a reputation for integrity and quality in everything we do.
We all make an important contribution to the Companys reputation. As we look to the future, each of us is responsible for helping ensure that we continue to meet the standards that have made Gap Inc. a leader.
On September 26, 2002, Gap Inc. announced that Paul Pressler, 15-year veteran of The Walt Disney Company and Chairman of its global theme park and resorts division, had been named President and Chief Executive Officer of the company. Mr. Pressler succeeded outgoing CEO Millard Drexler, who had announced in May his plans to retire as soon as his replacement was hired. Earlier that month, Gary Muto, former president of Banana Republic division, was appointed the president of the gap division of Gap Inc. They were both faced with the inevitable task of developing an effective differentiating enterprise-wide strategy if Gap was to survive and prosper against aggressive competition over the intermediate and long term future.
Gap Inc. sells its private label clothing in its own retail stores only and to no other retailer, wholesaler, or independent distributor. The three main brands/divisions are Banana Republic, Gap and Old Navy.
The three divisions are having problems, but the Gap division is in the worst condition. For the past few years it has been struggling with problems resulting from overexpansion and misjudgment of fashion trends. The Gap tried to move their casual clothing line to a more trendy style with bold colors, low-cut jeans, and teeny tops. New product lines were no longer appealing to regular customers and they did not attract new ones. Overexpansion added to the “wrong merchandise problem” by creating the effect of cannibalism of sales. It has also been reported that Gap is in its 28th straight month of declines in sales at stores open at least one year.
The harsh problem the Gap is dealing with is the ever changing demands of customer’s wants and needs. However the Gap is no exception to its industry. According to the U.S. Department of Commerce, sales at specialty apparel stores rose only 0.7 percent in the past year. Family clothing stores have the best performance, with sales up 1.6 percent. Sales at women’s apparel sores fell 2.5 percent, and those at men’s stores declined 1.8 percent.
To compete in this time era I believe that the Gap needs to step up its game and research what the customers are truly interested in before making another mistake. Survey current customers