- Don-Alvin Adegeest |
Following another loss this quarter, Gap is planning to bring faster fashion to its customers in order to compete with its high street contemporaries.
On Thursday Gap announced it would test small batches of product in selected Gap stores next spring and then quickly reorder if they are popular. At the same time, if certain product categories do not work, the company will not sit on endless supplies of over stock. Gap's sister brand Old Navy has already adopted the strategy, and remains the group's best performing brand.
Gap chief executive Art Peck stated the company aims to build the speed-to-market capability as quickly as it can.
And the change can’t come quickly enough as profits growth and confidence look to be in short supply at the company. The news about the new initiative came on Thursday after it reported a second consecutive fall in quarterly earnings, hurt by weak sales at the Gap brand where fashion missteps dulled shopper appetite for its safe offer. Gap said it did not expect to see improvement in sales before the key Holiday period.
Image: Gap, Old Navy SS15