All of our work in 2009 was aimed at connecting with our customers as they faced one of the most challenging times in recent memory.
Companies like ours had to compete differently as consumers looked for value from trusted brands that spoke to their individual needs. As you can tell by the cover, this report tells our story through the eyes of our customers.
Old Navy led the way for us in sales growth. The team kept a keen focus on its target customers, whom we refer to as Jennie, Mike and the kids. Across every department, Old Navy worked hard to make sure that decisions were made with this target family clearly in mind. As a result, Old Navy was able to deliver fashion at a great value for the entire family. The strategy is paying off; the business delivered six months of positive comps in the back half of 2009.
As a result of our commitment to constant consumer research, Gap reinvented one of the product categories linked to our heritage: denim. This led to the brand’s successful 1969 Premium Jeans collection. Our customers responded positively because of our perfect combination of style, fit, quality and price. We’re now expanding the 1969 product line to kids and baby, and will continue to work this formula in refreshing other key product categories.
Although not every consumer was as directly affected by the economy as others, all customers demanded more in 2009. Banana Republic heard from consumers that versatility was paramount and responded by adjusting its product and marketing in the second half of the year to showcase that it can be worn seven days a week—for work, weekend or going out.
One consumer trend that continues to gain momentum is convenience—customers “want it now.” We continued to make investments to expand our online and outlet presence so more people can participate with our brands.
Our online division grew sales in 2009. The e-commerce platform we launched in 2008—called...