How Gap Got Its Groove Back

It sounds like a Hollywood story, though it took place a few hours up the coast, in San Francisco: small retailer finds a niche, grows exponentially, falls into a corporate malaise and is reborn by returning to what made it famous in the first place. That, in essence, is the story of Gap Inc. as recounted recently by journalist Julie Zigoris for SFGATE.

Founded by Ocean Avenue by Doris and Don Fisher in 1969, Gap started by selling two things: records and Levi’s. The name was the brainchild of Doris, who played off the idea of a generation gap, and the concept parlayed into smart marketing appealing to a broad audience — the young and hip and those wanting to seem young and hip. And it had that catchy catchphrase: “Fall into The Gap.”

Gap Inc. went public in 1976 and began adding to its portfolio of brands: First came Banana Republic (1983), then Old Navy (1994) and finally Athleta (2008). “Gap’s zenith came under khaki wizard Mickey Drexler, who became the CEO of Gap Inc. in 1995 after serving as Gap’s division head,” Zigoris wrote. “Credited with the rapid expansion of the brand and the transition from Levi’s boutique to casual separates powerhouse, Drexler left the company in 2002 and went on to helm J. Crew. The company then struggled under a rotation of CEOs — and it wasn’t clear if Gap would find its footing again.”

But it looks like it finally has: “The company reported strong fourth-quarter earnings in March, with Gap brand up 7% in the fourth quarter of 2024,” SFGATE notes. “Celebrities can be spotted wearing Gap once again: Timothée Chalamet wore a black satin GapStudio ensemble to an Academy Awards nominee dinner, Anne Hathaway showed off a custom Gap shirtdress at a Bulgari event, and Demi Moore sported a Gap cropped denim moto jacket to the San Francisco International Film Festival — appearances that echo the days of Sharon Stone emerging on the red carpet in Gap. Even TikTok users are highlighting Gap’s appeals— the ’90s nostalgia, the quality wardrobe staples — giving the brand free advertising.”

Gap’s rebound is due at least partly to current CEO Richard Dickson, who joined the company in 2023 after reviving Mattel’s Barbie. Thanks to a variety of decisions by Dickson – including hiring celebrity designer Zac Posen as creative director in 2024 — “there’s a vibrancy at Gap Inc. that’s trickling down through all the brands,” the news site notes.

Will that last? Only time will tell.

“Gap resuscitating itself after more than a decade-long slump seems to mirror the trajectory of the city in which it was born,” Zigoris concludes. “Both, ultimately, shine glimmers of hope — and each is tightly interwoven into the fabric of the other.”