Can Gap Come Back?

Mya Frazier
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0040
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Gap, the quintessential all-American brand was founded in 1969. Its parent company, Gap Inc., expanded by opening stores worldwide and acquiring brands in several apparel markets. Once cool, many feel its brand image has become outdated. It has been difficult for Gap to compete in the fashion apparel industry due to changing customer wants, burgeoning e-commerce, and exciting international fast-fashion chains such as H&M, Uniqlo, and Zara, offering up-to-the minute fashions with constant stock replenishments. Cannibalization of similar merchandise in sister stores has also been a long-term problem for the company. A reduction in sales has led to the closure of many US Gap stores and a large reduction in value of the parent company. The CEO is assessing Gap’s business and making changes to be competitive. Can Gap come back and continue to be vital in today’s apparel industry?

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