As sales fall at the Gap Inc. retailer store and its other sister companies, one seems to be reaching all time highs: Old Navy.
On Thursday May 21, the Gap Inc. first quarter sales showed a 5 percent drop in sales for the fiscal year. Usually the brand increases around 4 percent per year, this is the first time the exact opposite has occurred. Banana Republic owned by the company also dropped in its sales by 3 percent.
As for Old Navy, they are definitely the envied sister of the pact. Their sales, unlike Gap’s 5 percent drop, had a 5 percent increase. The reason could be its remodeled look that is appearing more stylish to the eye.
The brand used to be the place to grab some cheap flip flops or basics for the entire family, but they have really stepped up their game introducing more ‘fashion forward’ clothing.
“They really weren’t known very much for being fashion forward,” says Jane Thomas, a marketing professor for Winthrop University.
Thomas talks about the company’s ‘brilliant strategy’ on how they revamped their brand to become fashionable.
They used the same person in charge of making the retailer H&M such a big hit to help them appeal to a younger crowd as the H&M brand does. Stefan Larsson was asked by Gap Inc. to help them with their Old Navy brand.
Larson reinvented Old Navy’s basics to clothes that are interesting and attractive as said by Columbia University student, Mark Cohen.
But as far as Gap Inc. they have Cohen confused.
“Is it trading into the teen segment with American Eagle, Abercrombie and Aeropostale, or is it trying to move up market to an older customer? I’m not sure they get it,” he says
If they are trying to follow the footsteps of Old Navy, Cohen does not see it and neither does anyone else. Maybe they should ask Larson for some help with their brand too.
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