Maybe not, but for Gap Inc., targeting too young a demographic may well be the reason comp-store sales for the most recent quarter fell 2 percent. Last year at this time, comp-store sales were up 11 percent. Why the difference? According to ceo Mickey Drexler, “We got too young.”
Drexler and the Gap noticed that while adults have been frequenting its trio of stores with their children, they rarely purchase merchandise for themselves. “When we get tricky, when we get young, when we get gimmicky at the Gap, we kind of lose it,” says Drexler.
To revive sales, Gap stores will focus on the business-casual trend in work apparel, and in particular will offer more menÕs apparel at both Gap and Old Navy stores. The stores will also begin offering menÕs pants sizes up to 46, two sizes larger than their current offerings.
Old Navy will introduce a new, more sophisticated line of merchandise for men and women. Called “Collections,” it is currently being sold only at flagship stores and on the Old Navy web site. New larger sizes for women will also be introduced, along with pants that fit “curvier” figures.
And Banana Republic will offer more casual apparel and “friendlier” starting-price points, Drexler said. Gap also plans to change the Banana Republic storesÕ upscale atmosphere, which Drexler called “a little elitist.”
The retailer posted earnings of $235 million on sales of $2.7 billion for the most recent quarter. Comp sales fell 5 percent at Gap stores and 1 percent at Old Navy stores, but Banana Republic and Gap International reported increases of 5 percent.