San Francisco -- Gap Inc. highlighted its use of technology and innovation to bridge the growing digital world with its physical stores at the company’s annual meeting with investors. In new initiatives, the retailer is expanding its reserve in-store service to all U.S. Gap stores by the end of the second quarter, enabling online and mobile shoppers to now reserve items at more than 1,000 Gap and Banana Republic store locations.
In addition, the company will be testing its new order in store capability, which allows customers instant access to expanded product offerings online.
“We have the world’s best collection of American brands coupled with a strong economic model and runway for global growth,” said Glenn Murphy, chairman and CEO, Gap Inc. “As the retail landscape evolves, we continue to deliver on our omni-channel roadmap and focus on owning the shopping experience of the future.”
The company discussed its plans to continue driving online growth by leveraging technology and innovation combined with top talent to deliver new digital capabilities to customers and make further progress in mobile, personalization and loyalty programs.
Murphy and company executives also discussed plans to grow through expansion in Asia, as well as in its global outlet, online and franchise channels. Building on Old Navy’s recent debut in mainland China and Gap’s growing store base in the world’s second largest apparel market, the company said China is its largest growth initiative. It expects sales in China to triple in three years, reaching $1 billion.
Gap executives also discussed the company’s ongoing its move to a seamless inventory model and a more responsive global supply chain.
“In the next five years, we plan to leverage our scale to drive our strategic initiatives – including global growth plans, omni-channel strategies, a seamless inventory model and fully responsive supply chain. We expect these initiatives to contribute meaningfully to our revenue growth and operating profit,” Murphy added.
The company also underscored its continued commitment to delivering against long-term financial objectives.
“Over the past five years, we have increased revenue $1.6 billion, grown EPS at a 15 percent compound annual growth rate and returned an average of $1.6 billion in cash per year via share buybacks and dividends,” said Sabrina Simmons, executive VP and CFO, Gap Inc.