The Future of GAP Inc.
Tanvir H DeWan
Coordinator, CBA Department
Afruja Akter Jisa
Sumaia Rahman Nancy
Zahirul Haque 09302014 BBA Md Mehdi Hassan 09202077 BBA Md Rakib Hasan 09202054 BBA Current Situation
A. Current Performance: Gap Inc. was one of the leading International specialty retailers offering clothing, accessories and personal care products for men, women, children, and babies. The company primarily conducted its business through four business divisions: Old Navy, Gap, banana republic, Forth & Towne Brands and others. It primarily operated in North America. Gap division’s brands also included Gap Kids, baby Gap, and Gap Body. In June 2006, the company operated 3,070 stores, including Gap, banana republic, and Old Navy stores throughout the U.S., as well as in Canada, the UK, France, and Japan.
Old Navy targeted cost-conscious shoppers. Old Navy stores offered selections of apparel, shoes, and accessories for adults, children, and infants as well as other items, including personal care products. Old Navy also offered a line of maternity and plus sizes in its stores. The Old Navy division recorded revenues of $6.86 billion in fiscal year 2006, an increase of 1.6% over 2005.
The banana republic brand offered a more sophisticated dress-casual and tailored apparel, shoes, and accessories for adults. Its products ranged from apparel, including intimate apparel, to personal care products. The banana republic division recorded revenues of $2.3 billion in fiscal year 2006, an increase of 1.4% over 2005.
Other divisions included Forth & Towne and direct, as well as international sales programmers. Forth & Towne was the company’s newest retail concept, principally targeting women over the age of 35. The “other” division recorded revenues of $29 million in fiscal year 2006, as compared to the revenues of $11 million in fiscal 2005.
Gap was set up by Donald Fisher in 1969.It’s first store was started in San Francisco. It’s retail concept was an instant hit. Then they shifted to high-margin private levels. By 1980, 200 Gap outlets in the U.S. offered 14 different private labels, such as Foxtails, Monterey Bay, and Durango. As other retailers started taking the same private label route to bolster their margins. Gap seemed to be getting lost in the crowd.
Gap was ranked 52nd (2005 ranking—40th) by the Business Week Inter-brand survey conducted in August 2006. In 2005, it was valued at $6416 million.
B. Corporate Governance:
Board of Directors:
Adrian D. P. Bellamy
Chairman of Reckitt Benckiser plc. Chairman of Williams-Sonoma, Inc.
Domenico De Sole
Chairman of Tom Ford International Director of Newell Rubbermaid, Inc.
Robert J. Fisher
Managing Director Pisces, Inc.
Former Chairman, Interim CEO
William S. Fisher
Founder of Manzanita Capital.
Chief financial officer of AMR Corporation and American Airlines, Inc.
Bob L. Martin
President and Chief Executive Officer of Wal-Mart International.
Jorge P. Montoya
Former executive of The Procter & Gamble Company.
Glenn K. Murphy
Chairman and Chief Executive Officer.
EVP, product and design, Old Navy
Merchandiser, Old Navy men’s
EVP, product development and design,
President, Banana Republic
President, Gap Inc. outlets
EVP, Gap Inc. online division
SVP, Gap Inc. outlets
Divisional merchandising manager,
Gap brand, women’s
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