Gap is struggling to keep up with its sister brands — we visited the store and saw why (GAP)

pulse

August 29, 2018 2:55 PM

Gap is struggling to keep up with it's sister brands Old Navy, Banana Republic, and Athleta. Even though Gap Inc. is doing well, the Gap brand sales are down. We visited a Gap store to see why.

Gap Inc,. saw 2% sales growth overall, but the Gap brand
We visited a Gap store to see why it's struggling.

Gap is struggling to keep up with its sister stores.

Gap Inc., the parent company of Gap, Banana Republic, Old Navy, and Athleta, saw 2% sales growth overall, with growth spearheaded by Old Navy and Athleta. It was the seventh consecutive quarter of positive comparable sales growth for the company.

But the Gap brand itself is struggling — comparable sales were down 5% this quarter.

We went to the Gap in the financial district. There was a 40% off sign in the window, and a 70% off sign outside the door.

Women's clothing was on the first floor.

Generally speaking, it was pretty expensive.

Even t-shirts were a bit expensive. A plain gray t-shirt cost $35.

Considering the price tag, the styles weren't that great. Many shirts on display were stretched out and wrinkled.

It was confusing who the store was trying to appeal to. A lot of what it carried looked like what you might fight at Gap's sister store Old Navy, but with a higher price tag.

Even small products were a bit expensive, like this $35 belt.

Gap sold its logo hoodies for $40, but they were 40% off, as was most of the store.

Gap also sold sleepwear...

...and workout gear.

But some of what was sold as workout gear didn't really seem suited for that.

There was a huge sale section with everything from swimsuits, to t-shirts, and denim for under $15. That's nearly 75% off the regular price of denim.

Upstairs was a kids section, and the prices were about the same as the women's clothes.

The men's section was downstairs, and it was more expensive than the rest of the store. Jeans cost almost $80, and a flannel shirt cost $60.

Some products on display were already stained.

Even though the quality of the clothes at Gap was high, it essentially sold all of the same products as its sister store Old Navy, but at a much higher price. It's clear why the store is struggling to keep up.

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