Analysis: Spin-off of Old Navy could spell beginning of end for Gap brand

Press enter to search
Close search
Open Menu

Analysis: Spin-off of Old Navy could spell beginning of end for Gap brand

By Tiffany Hogan, senior analyst, Kantar Consulting - 03/01/2019
The spin-off of Old Navy is great news for the brand in that it will no longer have its success consistently outweighed by the sluggish performance of the Gap. But for the Gap, this seems like potentially a last significant effort to help the brand find its place in a market where it has lost relevance — if this reinvention effort does not work, it could likely spell the beginning of the end. An overhaul of the size that Gap needs could cause a cash shortage if it doesn’t succeed.

To succeed, Gap will need to:

• Redefine its USP as a brand in a crowded marketplace;

• Hone in on who its true shopper base is and who they want it to be. The answer may not be with the same shoppers’ that the brand has always targeted or courted;

o Pick a lane on price. Gap literally falls into the pricing “gap.” Shoppers can find similar quality for smaller prices, and better quality for similar prices; and

o Pick a lane on fashion. While Gap started as a basics company, it has since dabbled in fashion and beyond. It will need to find the right mix of style and staples that are relevant to its target shopper.

Related Topics