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February 16, 2007

Gap set for New Push

Analysis of: Top Designer Exits Gap | www.wwd.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Andrew Ashbaucher
President, Little Dipper Associates, Inc.
Implications:

Hooray!  It is now time for Gap to re-emerge as an industry leader.  Look out American Eagle, Abercrombie and Fitch, Urban Outfitters, and Hollister Co., the old Champ is poised for a comeback!



Analysis:

Hooray!  It is now time for Gap to re-emerge as an industry leader.  Brand loyalty for Gap is strong and powerful, the problem is that it has been forced into the underground.  Shoppers continue to shop Gap hoping for resurgence in buying possibilities.  Unfortunately the product mix has not maintained its edge.  In the specialty apparel industry “Product is King”.

Customers are offered neither the classic Gap polo shirt and jeans nor the hip new designs they are looking for.  Instead they are treated to copycat designs that first appear in stores like American Eagle, Abercrombie and Fitch, Hollister Co. or Urban Outfitters.  Shoppers have been mistreated by Gap’s complacency with its product mix but are looking for a way to return to one of their favorite stores.

It is not that shoppers are not interested in Gap, it is that they are disappointed in what they find there.  With new openings for the CEO and high-level designers, now is the opportunity shoppers have been hoping for.  If new “fresh” designs start hitting the racks, the turnaround for Gap could be much easier than expected.  Shoppers will once again be able to visit Gap with pride and begin to talk about Gap as the place to go instead of the place that never has anything “cool”.

If you are looking for future indicators of Gap’s performance go to the mall and look around.  Do you see any Gap bags?  Do you hear any teens asking their parents when they can go to Gap?  These are the questions that need answering, and now is the time for Gap to step up to the challenge.


Other Analyses of the Same Source Article:
Not Ready To Cash Out: The Gap Begins Its Search For A New CEO
February 14, 2007, Author: Martin Brill, Managing Partner, Sweetwater Consulting LLC

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