E-commerce and “collaborations” with Kanye West: like Gap Inc. will compensate for the closure of nearly 350 offline stores
Gap Inc. - the largest US clothing retailer, which owns the world's third-largest chain of stores. The company's portfolio includes such brands as Gap, Old Navy, Banana Republic, Athleta, etc. Most of them are showing a positive trend, as the flagship brand in recent years, on the contrary, -. Serious subsidence of the main financial […]
Gap Inc. - the largest US clothing retailer, which owns the world's third-largest chain of stores. The company's portfolio includes such brands as Gap, Old Navy, Banana Republic, Athleta, etc. Most of them are showing a positive trend, as the flagship brand in recent years, on the contrary, -. Serious subsidence of the main financial indicators. Gap Inc. - the largest US clothing retailer Problems with sales started long time ago in 2018 at the then current CEO of Art Peck said that dissatisfied profitability, traffic and shopping experience Gap. Only in the third quarter of the same year, sales of the brand fell 7%. Therefore Peck planned closure of most offline outlets. However, due to the premature departure of the head from the post in November 2019 the corporation failed to fully implement the plan. Recall that at the head of Gap Inc. Art Peck replaced family heir founders Robert J.. Fisher. But in March 2020 the company appointed gendirom Sonia Singal. Gap CEO of Sonia Singhal visited the distribution center to thank the company's employees Gap will close about 30% of the stores until July 2021 A few days ago an American retailer Gap Inc. announced its intention to close another 350 stores Gap and Banana Republic, which is about 30% of all retail outlets. About 120 of them fall on the continent of Europe: France, Italy, UK. Also in the management of Gap Inc. is the question of closing the warehouse in the UK & nbsp.; According to Le Monde, the majority of closures occur until July 2021. By this time the company hopes to increase revenues from e-commerce. In this case, Gap does not want to completely lose objects, as they may be useful in enhancing their e-commerce activities. Perhaps, the retailer will give just part of the business franchises. Closing European offline stores will lead to a loss of about 3% of the turnover of the American brand. In 2019 sales of flagship brand Gap Inc. Europe brought $ 539 million with total sales §13,3 billion. Gap closes for about 350 stores until mid-2021 Power Plan 2023 - New Strategy Gap, focused on online channels Gap October 22 held an online meeting with investors and presented a new development strategy - Power Plan 2023. The corporation shifts orientation towards e-commerce. During the first 9 months of 2020 Gap recorded losses totaling $ 994 million. However, the new strategy should fully compensate them and to return revenue streams as early as 2021. So, over the next three years, the brand Old Navy plans to double the share of sales accounted for by online channels. According to forecasts of the total revenue will grow from $ 8 to $ 10 billion in addition, will open the offline shopping -. 30-40 points per year. Big hopes are pinned on young brand Athleta, which produces sports clothing exclusively for women. The Corporation will work to improve its recognition due to the opening of 100 new stores and infusions in online promotion. By increasing brand awareness Athleta plan to increase revenue in half - from $ 1 to $ 2 billion, also plans to open about 100 new stores under the label & nbsp;.. The result of Power Plan 2023 Gap Inc. It expects an increase in sales Old Navy and Athleta to 70% of the total against 55% today. Gap is working to increase brand awareness Athleta, which produces sportswear for women of any build Also, in June this year, the corporation reported a steep collaboration. Together with rapper Kanye West's flagship brand will launch an exclusive line of clothing Yeezy X Gap. This move should have a positive impact on sales and perhaps even "save" the greatest representative of the mass market from collapse. As is known, on account of Kanye West has several powerful launches, together with international brands. Why are only running shoes Yeezy Boost, issued together with Adidas. The first edition of the model sold out in 10 minutes. Therefore, we can say that all of that is taken rapper is doomed to become a fashionable and selling. Gap shares rise in price? Since the beginning of 2020 Gap quotes have increased by 19% and ranged in the $ 20 area. Analysts have not yet given detailed forecasts, but are inclined to believe that the brand will be able to hold their positions. Moreover, the growth in revenues from e-commerce and new projects could even lead to higher prices for the company's shares. Since the beginning of 2020 Gap quotes have increased by 19% and ranged in the $ 20 area

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