Gap Designer Strategy Not Effective
Business Marketing December 7th, 2006
The Gap clothing store may have a few problems this holiday season. After recently adopting a marketing tactic from Swedish rival Hennes & Mauritz the company is having trouble igniting holiday sales. The company’s CEO, Paul Pressler is struggling to get customers in the doors while sales have dropped 27 out of the past 30 months.
Most department and retail clothing stores are begining to use high end designers to boost traffic and sales this year such as Kohls and Target. The biggest problem for The Gap is not displaying and promoting the “Mouret” name in their display windows or print advertisements. All we were treated to were rapping lyricists and Audrey Hepburn dancing in slim black pants. “We have lost confidence in management’s ability to source the right product,” Todd Slater, an analyst at Lazard Capital Markets, wrote in a note to investors. He lowered Gap’s rating to “hold” from “buy” on Nov. 30.



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