GAP

Summary

Founded in 1969 by Donald Fisher and Doris F. Fisher as a modest store that stocked Levi’s, American worldwide clothing and accessories retailer Gap Inc. now owns Gap, Banana Republic, Old Navy, Athleta and Intermix and operates in more than ninety countries. The company operates four primary divisions: Gap, Banana Republic, Old Navy and Athleta. Interestingly Gap Inc. is the largest specialty retailer in the United States and third on the international fashion map behind Inditex Group and H&M. The Fisher family remains deeply involved in the company, collectively owning much of its stock.

History

In 1969 Donald Fisher, friend of Walter “Wally” Haas Jr, President of Levi Strauss and Co., was impressed with the success of ‘The Tower of Shoes’ in Sacramento, California. The modest store drew crowds by advertising that no matter what brand, style or size of shoes a woman desired, she would find it. Aware that Macy’s, the biggest Levi’s stockist, was continually running out of best-sellers, Fisher requested Haas to let him stock Levi’s and mimic The Tower of Shoes’ business model. They worked out a plan that ensured Gap — named by Fisher’s wife, Dorothy — would never be out of stock by overnight replenishment. It was a hit.

Fisher opened Gap stores in San Francisco and San Jose, stocking only Levi’s and LP records, and within two years established its corporate headquarters in Burlingame, California. By 1973, the company had over twenty-five stores and had expanded into the East Coast with a store in Voorhees, New Jersey. In 1976, The Gap Stores, Inc. went public with an initial offering of 1.2 million shares of stock at $18 per share. The following year, it opened two new chains: Logo, targeting a fashion conscious customer and brands, offering value-priced products. 1978 witnessed Gap’s label of denim and corduroys.

In the Eighties Gap Inc. purchased Banana Republic, a safari-themed retail chain and catalog business founded in Mill Valley, California and began expanding overseas. In 1986, GapKids opened in San Mateo, California. In the Nineties, Levi’s was no longer sold in Gap and the company revamped its inventory under the direction of Millard Drexler. He resigned in 2002 after a slump in sales and was replaced by Paul Pressler who is credited with closing under-performing stores and clearing debt.

However, he failed to recover the company’s market leadership and was replaced by Robert J. Fisher on interim until Glenn Murphy took over the reins. Gap subsidiary Old Navy opened in Colma, California, based on the successful prototype, Gap Warehouse. New lead designers were also brought on board to give the brand a fashionable image, including Patrick Robinson for Gap Adult, Simon Kneen for Banana Republic, and Todd Oldham for Old Navy.

In 2003, Madonna and Missy Elliot starred in a Gap commercial to promote corduroys and blue jeans. In 2013, Gap Inc. acquired Intermix, a chain of luxury boutiques across North America, founded in 1993 by Khajak and Haro Keledijan. In 2019, Janie and Jack, a high-end children’s store, was acquired. In recent times, Gap Inch allied with financial technology company Afterpay to improve its e-commerce business. Per Forbes, Gap Inc. stocks “increased by almost 63% from the beginning of 2021 (at $20) to $33 per share currently.” [June 2021]

Today Richard Dickson is President and Chief Executive Officer of Gap Inc., leading its $15 billion business and a global team of nearly 90,000 across a portfolio including Old Navy, Gap, Banana Republic and Athleta.

Vision

Gap, part of Gap Inc, envisions creating a future where fashion is accessible, sustainable, and inclusive. As one of the world’s largest clothing retailers, Gap strives to inspire customers by providing high-quality, timeless clothing while reducing its environmental footprint. Their long-term goal is to become a leader in the industry by prioritizing sustainability through responsible sourcing, reducing carbon emissions, and fostering a circular fashion economy. This vision aligns with growing consumer demands for environmentally conscious brands and reflects Gap Inc.’s commitment to addressing the global environmental challenges that fashion production often exacerbates.

In addition to sustainability, Gap envisions a company culture and product offering that promotes inclusivity and diversity. The brand seeks to create a shopping experience where people of all backgrounds, sizes, and identities feel represented and valued. By focusing on inclusivity both in their workplace and in the designs they offer, Gap aims to break down the barriers of traditional fashion norms. This means offering a broader range of sizes, styles, and collections that cater to a more diverse consumer base while fostering a culture of equality and opportunity for its employees.

Looking to the future, Gap aspires to drive change in the fashion industry by leveraging innovation and technology. By integrating new digital tools and data-driven strategies, the company plans to enhance the customer experience, from online shopping to personalized clothing recommendations. Gap believes that the future of fashion lies at the intersection of style, sustainability, and technology. Through continued innovation, the company hopes to stay ahead of industry trends and set new standards for how brands can lead responsibly while meeting the evolving needs of modern consumers.

Mission

Gap’s mission is to connect with customers around the world by delivering stylish, quality clothing that reflects individuality and timeless design. The company strives to offer products that resonate with people from all walks of life, providing apparel that combines comfort, function, and fashion. Their focus is not only on creating clothing that customers love but also on ensuring accessibility through a wide range of price points and product categories. This mission emphasizes the importance of providing value while maintaining a strong commitment to ethical practices and responsible production methods.

At the core of Gap’s mission is the desire to make a positive impact on both people and the planet. They aim to empower individuals through fashion while minimizing their environmental footprint by adopting sustainable practices across their supply chain. By promoting ethical sourcing, reducing waste, and supporting fair labor conditions, Gap Inc. ensures that their business model aligns with their values of integrity and social responsibility. Through these efforts, Gap Inc. aspires to create a better future for their customers, employees, and the communities they serve.

The Team

Richard Dickson (Chairman and CEO)
Katrina O’Connell (CFO)
Mark Breitbard (CEO of Gap Brand)
Mary Beth Laughton (President and CEO of Athleta)
Gurmeet Singh (Chief Digital and Technology Officer)
Cammeron Finnegan McLaughlin (Head of Investor Relations)
Julie Gruber (Chief Legal and Compliance Officer and Corp. Secretary)
Sheila Peters (Chief People Officer)
Thomas J. Lima (General Counsel)
Sally Gilligan (Chief Growth Transformation Officer)

Products and Services

Gap Inc. is renowned for its wide product portfolio of clothing that combines timeless style with everyday functionality. From casual essentials like jeans, t-shirts, and hoodies to more polished pieces for work or special occasions, Gap’s collections are designed to cater to diverse needs. Known for its focus on comfort, quality, and simplicity, Gap has established itself as a go-to brand for wardrobe staples. Their product lines extend beyond clothing to include fashion accessories, footwear, and activewear, ensuring that customers can find everything they need to complete their looks. The company is also committed to offering a broad size range, including maternity, petite, and plus sizes, making fashion accessible to all body types.

In addition to its core products, Gap Inc. provides a range of services to enhance the shopping experience. Whether customers prefer shopping in-store or online, Gap offers seamless options that include flexible return policies, curbside pickup, and a robust online shopping platform. Their services are designed to make the process as convenient as possible, with features like personalized styling recommendations and easy navigation of products. Gap’s loyalty programs and frequent promotions add value to their services, rewarding loyal customers with discounts and special offers. Overall, Gap Inc. prioritizes both product quality and customer satisfaction, ensuring a shopping experience that is both enjoyable and hassle-free.

Awards and Recognition

In 2019, Gap Inc. won for Best Company Work-Life Balance. Based on 4,018 ratings and 411 participants, employees at Gap Inc. are less satisfied with their work experience. The overall culture score, 66/100 or C, incorporates employee ratings based on their feedback on the Compensation, Leadership, Meetings and more.

References

• Official website Gap
• Gap: Democratization Is A Powerful Marketing Idea Forbes
• Twitter page of Gap Twitter
• Should You Invest In Gap Inc’s Stock Now? Forbes
• LinkedIn page of Gap LinkedIn
• Gap Inc. To Double Down On Athleta Forbes
• Facebook page of Gap Facebook
• Kayne West for Gap NY Times
• Wikipedia page of Gap Wikipedia
• Gap Forbes
• Instagram page of Gap Instagram
• Gap Inc. Announces Art Peck To Step Down As Chief Executive Officer Gap
• Gap Explores Alternatives, Including Possible Sale CNBC
• Gap pulls ‘child labour’ clothing BBC
• Gap taps Old Navy chief Sonia Syngal as CEO CNBC
• Gap wrestles with Zara for top spot Forbes
• New DAP Collection Of Kids’ Clothing And New Product Categories Gap
• Athleta Introduces New Experiential Fitness Series Gap
• Shirts for the fashionable Independent