Retail heavyweight Gap Inc. has been a household name for decades. With Gap – and sister companies Banana Republic, and Old Navy – stores in over 3,700 locations worldwide, the brand is almost impossible to avoid. Yet, recent sales figures indicate that Gap’s long-running popularity may be in peril.
According to the global press release distributor Business Wire, during the second quarter of the 2016 fiscal year:
- Gap sales were down -3%
- Banana Republic sales were down -9%
- Old Navy sales remained at a flat rate
Gap Inc.’s recent sales plunge may be directly linked to its lack of marketing efforts. As a result, the multibillion-dollar company’s chief executive Art Peck intends to introduce new marketing tactics to attract greater attention and increase revenue.
Most recently, Old Navy was given the lion’s share of Gap Inc.’s marketing focus, and as second quarter sales reveal, the subsidiary is generating the most financial success. Hoping to duplicate these results, Gap Inc. has hired Abercrombie & Fitch alum Craig Brommers as its new chief marketing officer.
So, moving forward, what exactly is Gap Inc.’s marketing strategy?
An article published by Ad Age in August outlined Gap Inc.’s three-pronged marketing approach, which included:
- Making supply chain improvements by scrutinizing consumer buying habits and communicating more effectively with vendors to ensure the timely reordering of high-selling items.
- Incorporating modern apparel technologies such as heat-regulating, sweat-resistant, and stretch-flexible fabrics into its products. These technologies will give a greater sense of versatility to the clothing line, thus appealing to a larger consumer base.
- Investing in high-profile celebrity endorsement. Old Navy has chosen comedic mega-star Amy Schumer to appear in eight marketing campaign spots that will air throughout the holiday season and possibly even into spring.