Gap Inc

Topics: Millard Drexler, Gap, Patrick Robinson Pages: 6 (1425 words) Published: September 5, 2013
Project
On
Study the Segmentation, Positioning and Target Market of GAP Inc.

Submitted by
Ashish Dhama
Heer Jhurmarwala
Kavina Mamtora

Under the supervision of
Ms. Noopur Chopra

Submitted to
National Institute of Fashion Technology (NIFT)
(Ministry of Textiles, Govt. of India)
GH-0 Road, Behind Infocity
Gandhinagar 382007. Gujarat
http://www.nift.ac.in
September, 2013
About the Brand
Doris and Don Fisher opened the first Gap store in 1969. The reason was simple. Don couldn’t find a pair of jeans that fit. They never expected to transform retail. But they did.

Guided by humility, compassion and a strong desire to win, the Fishers grew their company thoughtfully. Customers responded.

Today, Gap Inc. is a leading international specialty retailer with six brands – Gap, Banana Republic, Old Navy, Piperlime, Athleta and INTERMIX – over 3,400 stores and 133,000 employees.

We’re growing globally, and just within the last few years, we opened our first stores in China and Italy. We're expanding online shopping to customers, too. Today, customers in about 90 countries can buy our products.  

While many things have changed since 1969, the principles on which we were founded have stayed the same: creativity, delivering results, doing what’s right and always thinking of our customers first. History

Donald and Doris Fisher opened the first Gap store on Ocean Avenue in San Francisco on August 21, 1969; its merchandise consisted of Levi's and LP records. They had raised $63,000 to open the store,[1] and reached $2 million in sales in the first year of operation. In 1970, Gap opened its second store in San Jose, California and established its corporate headquarters in Burlingame, California with four employees. By 1973, the company had over 25 locations and had expanded into the East Coast market with a store in the Echelon in Voorhees, New Jersey. In 1974, Gap began to sell private-label merchandise. In the 1990s, Gap assumed an upscale identity and revamped its inventory under the direction of Millard Drexler. However, Drexler was removed from his position in 2002 after over-expansion, a 29-month slump in sales, and tensions with the Fisher family. Drexler refused to sign a non-compete agreement and eventually became CEO of J. Crew. One month after his departure, merchandise that he had ordered was responsible for a strong rebound in sales. Robert J. Fisher recruited Paul Pressler as the new CEO; he was credited with closing under-performing locations and paying off debt. However, his focus groups failed to recover the company's leadership in its market. In 2007, Gap announced that it would "focus [its] efforts on recruiting a chief executive officer who has deep retailing and merchandising experience ideally in apparel, understands the creative process and can effectively execute strategies in large, complex environments while maintaining strong financial discipline." That January, Pressler resigned after two disappointing holiday sales seasons and was succeeded by Robert J. Fisher on an interim basis. He began working with the company in 1980 and joined the board in 1990, and would later assume several senior executive positions, including president of Banana Republic and the Gap units. The board's search committee was led by Adrian Bellamy, chairman of The Body Shop International and included founder Donald Fisher. On February 2, Marka Hansen, the former head of the Banana Republic division, replaced Cynthia Harriss as the leader of the Gap division. The executive president for marketing and merchandising Jack Calhoun became interim president of Banana Republic. In May, Old Navy laid off approximately 300 managers in lower volume locations to help streamline costs. That July, Glenn Murphy, previously CEO of Shoppers Drug Mart in Canada, was announced as the new CEO of Gap, Inc. New lead designers were also brought on board to help define a fashionable image, including Patrick Robinson for Gap...
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