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Revision as of 10:51, 20 October 2016
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Company type | Public |
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Industry | Retail |
Founded |
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Founder | |
Headquarters | San Francisco, California , U.S. |
Number of locations | |
Area served | Worldwide |
Key people |
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Products | |
Revenue | |
Total assets | |
Total equity | |
Number of employees | 137,000 (May 2014)[5] |
Subsidiaries |
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Website | www |
The Gap, Inc.,[6] commonly known as Gap Inc. or Gap, (stylized as GAP) is an American worldwide clothing and accessories retailer.
It was founded in 1969 by Donald Fisher and Doris F. Fisher and is headquartered in San Francisco, California. The company operates five primary divisions: the namesake banner, Banana Republic, Old Navy, Intermix, and Athleta. Gap Inc. is the largest specialty retailer in the United States, and is 3rd in total international locations, behind Inditex Group and H&M.[7] As of September 2008, the company has approximately 135,000 employees and operates 3,727 stores worldwide, of which 2,406 are located in the U.S.[8]
The Fisher family remains deeply involved in the company, collectively owning much of its stock.[9] Donald Fisher served as Chairman of the Board until 2004, playing a role in the ouster of then-CEO Millard Drexler in 2002, and remained on the board until his death on September 27, 2009. Fisher's wife and their son, Robert J. Fisher, also serve on Gap's board of directors. Robert succeeded his father as chairman in 2004 and also served as CEO on an interim basis following the resignation of Paul Pressler in 2007, before being succeeded by Glenn K. Murphy up until 2014. On February 1, 2015, Art Peck took over as CEO.[10]
History
Donald and Doris Fisher, who had a difficult time finding jeans that fit, opened the first Gap store on Ocean Avenue in San Francisco on August 21, 1969; its merchandise consisted of Levi's and LP records.[11] They had raised US$63,000 to open the store,[12] and reached US$2 million in sales in the second full year of operation. In 1970, Gap opened its second store in San Jose, California; its back room serves as the company's first replenishment warehouse. In 1971, Gap established its corporate headquarters in Burlingame, California with four employees. By 1973, the company had over 25 locations and had expanded into the East Coast market with a store in the Echelon Mall in Voorhees, New Jersey. In 1974, Gap began to sell private-label merchandise.
In the 1990s, Gap assumed an upscale identity and revamped its inventory under the direction of Millard Drexler.[13] However, Drexler was removed from his position after 19 years of service in 2002 after over-expansion, a 29-month slump in sales, and tensions with the Fisher family. Drexler refused to sign a non-compete agreement and eventually became CEO of J. Crew. One month after his departure, merchandise that he had ordered was responsible for a strong rebound in sales.[14][15][16] Robert J. Fisher recruited Paul Pressler as the new CEO; he was credited with closing under-performing locations and paying off debt. However, his focus groups failed to recover the company's leadership in its market.
In 2007, Gap announced that it would "focus [its] efforts on recruiting a chief executive officer who has deep retailing and merchandising experience ideally in apparel, understands the creative process and can effectively execute strategies in large, complex environments while maintaining strong financial discipline". That January, Pressler resigned after two disappointing holiday sales seasons and was succeeded by Robert J. Fisher on an interim basis.[17][18][19] He began working with the company in 1980 and joined the board in 1990, and would later assume several senior executive positions, including president of Banana Republic and the Gap units.[20] The board's search committee was led by Adrian Bellamy, chairman of The Body Shop International and included founder Donald Fisher. On February 2, Marka Hansen, the former head of the Banana Republic division, replaced Cynthia Harriss as the leader of the Gap division. The executive president for marketing and merchandising Jack Calhoun became interim president of Banana Republic.[21] In May, Old Navy laid off approximately 300 managers in lower volume locations to help streamline costs. That July, Glenn Murphy, previously CEO of Shoppers Drug Mart in Canada, was announced as the new CEO of Gap, Inc. New lead designers were also brought on board to help define a fashionable image, including Patrick Robinson for Gap Adult, Simon Kneen for Banana Republic, and Todd Oldham for Old Navy. Robinson was hired as chief designer in 2007, but was dismissed in May 2011 after sales failed to increase. However, he enjoyed commercial success in international markets.[22][23][24]
In October 2011, Gap Inc. announced plans to close 189 US stores, nearly 21 percent, by the end of 2013; however, it also plans to expand its presence in China.[25][26] The company announced it would open its first stores in Brazil in the Fall of 2013.[27]
In January 2015, Gap Inc announced plans to close their subsidiary Piperlime in order to focus on their core brands. The first and only Piperlime store, based in SoHo, New York City, closed in April.[28]
Corporate identity
Logo
Gap Inc. owns a trademark to its name, "Gap". The Gap's original trademark was a service mark for retail clothing store services. The application was filed with the United States Patent and Trademark Office on February 29, 1972 by The Gap Stores; registration was granted on October 10, 1972. The first use of the trademark was on August 23, 1969, and expanded to commercial usage on October 17, 1969. A second application was filed by Gap Stores, Inc. on September 12, 1974, this time for a trademark filed for shirts. The first usage for shirts and clothing products was on June 25, 1974. Trademark registration was granted on December 28, 1976. Both the service mark and trademark are registered and owned by Gap (Apparel), LLC of San Francisco, California.
On October 6, 2010, in an effort to establish a contemporary presence, Gap introduced a new logo. It was designed with the Helvetica font and reduced the prominence of the brand's iconic blue box. After much public outcry, the company reverted to its previous "blue box" logo on October 12, after less than a week in use.[29][30] Marka Hansen, the executive who oversaw the logo change, resigned February 1, 2011.[31]
-
1969–1986
-
1986–present
-
October 4–11, 2010 (reverted back due to strong dislike)
Brands
Banana Republic, a small safari-themed clothing retailer, was purchased by Gap in 1983 and was rebranded as an upscale clothing retailer in the late 1980s. Old Navy was launched in 1994 as a value chain with a specialty flair. Forth & Towne, the company's fourth traditional retail concept, was launched on August 24, 2005, featuring apparel targeted toward women 35 years and older.[32] On February 26, 2007, after an 18-month trial period, it was discontinued, and the 19 stores were closed.[33] A fifth brand, the online clothing and accessories retailer Piperlime, was created in 2006; however, as of April 2015, the brand has been retired.[34] A sixth brand, Athleta, a women's athletic wear line, was added in 2009.[35] Intermix, a multi-brand fashion retailer founded in 1993, was acquired by Gap Inc. in 2012.[36]
Gap's Sales by Division in Q1 2009[37]
Divisions | Total revenue |
Gap North America | $834 million |
Banana Republic North America | $475 million |
Old Navy North America | $1.18 billion |
International | $369 million |
Gap Inc Direct | $267 million |
Marketing
![](http://upload.wikimedia.org/wikipedia/commons/thumb/b/be/San_Jose_Gap_store.jpg/220px-San_Jose_Gap_store.jpg)
The Gap originally targeted the younger generation when it opened, with its name referring to the generation gap of the time.[38] It originally sold everything that Levi Strauss & Co made in every style, size, and color, and organized the stock by size. The Gap was the first of many shops that carried only Levi's, which led to a worldwide shortage of indigo denim.[citation needed] The Gap eventually started making their own jeans and selling them at the expense of jeans from Levi's.[39] Gap's current marketing works to appeal to a broad demographic of customers, whereas Banana Republic presents a sophisticated image and Old Navy focuses "fun, fashion, and value" for families and younger customers. While the company has been criticized for blandness and uniformity in its selling environments, it maintains that it tailors its stores "to appeal to unique markets" by developing multiple formats and designs.[40] The domain www.gap.com attracts over 18 million visitors annually, according to a 2008 Compete.com survey.[41] The brand is being criticized in the UK because the merchandise that is offered to the UK customers cost double the prices (or even a direct $/£ swap) found in the United States. Gap also does not offer XXL or larger sizes in the UK stating the UK market does not require them in contrast to market leader NEXT who offer a variety of larger sizes in the UK.
International presence
Gap operates company-owned stores in the United States, Canada, the United Kingdom, France, Italy, Indonesia, Japan, China, Hong Kong, Taiwan, and Mexico as of May 2016; it also has franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, or Old Navy stores in 43 countries.[42] As of May 2016, Gap Inc. operates 3,727 company-owned and franchise locations.[43] In January 2008, Gap signed a deal with Marinopoulos Group to open Gap and Banana Republic stores in Greece, Romania, Bulgaria, Cyprus, and Croatia.[44] In February 2009, Elbit Imaging, Ltd. secured a franchise to open and operate Gap and Banana Republic stores in Israel.[45] In August 2010, the company opened its first store in Melbourne, Australia at Chadstone Shopping Centre.[citation needed] In September 2011, Komax opened the first Gap store in Chile, due to a franchise.[46] In October 2011, the first GAP store opened in Warsaw, Poland,[47] but shut it down and two other locations in Wrocław and Katowice in 2015. Gap now has a store in New Delhi, India which opened in May 2015. On 20 February 2016, Gap launched stores in Mumbai at Oberoi Mall and Infinity-2.
In May 2016, Gap Inc. announced it would shutter all Old Navy stores in Japan in response to poor Q1 performance for Old Navy and consistent losses across the organization.[48]
Product Red
In 2006, Gap took part in the Product Red campaign with the launch of a special RED collection, including a T-shirt manufactured in Lesotho from African cotton. The expanded Gap Product Red collection was released on October 13, 2006. 50 to 100 percent of the profits went to the Global Fund, depending on the item.[49] The company continued the products into 2007, especially in the lead up to Valentine's Day, using slogans such as "Admi(RED)" and "Desi(RED)." National Labor Committee for Worker and Human Rights activists criticized Gap's partnerships because Gap has historically been accused of sweatshop-like conditions.[50] Product Red has contributed over $45 million to the Global Fund, more than any other private donation received to date. Other launch partners included American Express, Apple Inc., Converse, Hallmark, Emporio Armani, and Motorola.
Labour controversies
In 2003, a class action lawsuit against Gap and 21 other companies alleged that sweatshop workers in Saipan were not paid for overtime work, were subjected to forced abortion, and were required to work in unsafe working conditions.[51] A settlement of 20 million dollars was reached whereby The Gap did not admit liability.[52]
In 2007, Ethisphere Magazine chose Gap from among thousands of companies evaluated as one of 100 "World’s Most Ethical Companies."[53] In May 2006, adult and child employees of Western, a supplier in Jordan, were found to have worked up to 109 hours per week and to have gone six months without being paid. Some employees claimed they had been raped by managers.[54] Most of these allegations were directed at Wal-Mart (who mostly ignored the claims), while Gap immediately looked into the matter to remedy the situation.[54][failed verification]
On October 28, 2007, BBC footage showed child labor in Indian Gap factories.[55] The company denied knowledge of the happenings; it subsequently removed and destroyed the single piece of clothing in question, a smock blouse, from a British store. Gap promised to investigate breaches in its ethical policy.[56]
Bangladeshi and international labor groups in 2011 put forth a detailed safety proposal which entailed the establishment of independent inspections of garment factories. The plan called for inspectors to have the power to close unsafe factories. The proposal entailed a legally binding contract between suppliers, customers and unions. At a meeting in 2011 in Dhaka, major European and North American retailers, including Gap, rejected the proposal. Further efforts by unions to advance the proposal after numerous and deadly factory fires have been rejected.[57] After the 2013 Savar building collapse, Kohl's became a founding member of the Alliance for Bangladesh Worker Safety.
On February 19, 2014, Glenn Murphy, CEO of Gap Inc., announced Gap will raise the minimum wages for its 65,000 U.S. store employees.[58]
Management
Leadership
The current leadership is:[59]
- Art Peck, Chief Executive Officer[60]
- Sabrina Simmons, EVP and Chief Financial Officer
- Jeff Kirwan, Global President, Gap
- Andi Owen, Global President, Banana Republic
- Sonia Syngal, Global President, Old Navy
- Nancy Green, President and General Manager, Athleta
- Jyothi Rao, President and General Manager, Intermix
- Abinta Malik, EVP and General Manager, Greater China
- Michelle Banks, EVP, General Counsel, Corporate Secretary, Chief Compliance Officer, Gap Inc.
- Michael Yee, EVP, Global Supply Chain Logistics and Product Operations, Gap Inc.
- Shawn Curran, EVP, Global Supply Chain, Sourcing and Production, Gap Inc.
- Bobbi Silten, President, EVP, Global Talent & Responsibility, Gap Inc.
- Paul Chapman, EVP and Chief Information Officer, Gap Inc.
- Sol Goldfarb, EVP, Digital & Customer Experience, Gap Inc.
Board of directors[61]
- Domenico De Sole
- Doris F. Fisher (1969)
- Robert J. Fisher (1990), Chairman (2004), Chairman (2015)
- William S. Fisher
- Tracy Gardner (effective November 11, 2015)[62]
- Bella Goren
- Bob L. Martin
- Jorge P. Montoya
- Art Peck
- Mayo A. Shattuck III
- Katherine Tsang
- Padmasree Warrior[63]
Stores
![](http://upload.wikimedia.org/wikipedia/commons/thumb/7/73/Gap%2C_Briggate%2C_Leeds_%2811th_April_2011%29.jpg/220px-Gap%2C_Briggate%2C_Leeds_%2811th_April_2011%29.jpg)
As of the end of Q1 2016, Gap Inc. had 3,727 company-operated or franchised stores in operation across 52 countries and had the ability to ship to 214 countries.[12][64] Stores in Brazil, Canada, China, France, Italy, Ireland, Japan, UK, and US (including Puerto Rico) are company-owned; those outside of these countries are owned and operated by franchises.
Restatement
On November 14, 2002, the company made a merchandise inventory and accounts adjustment.[80]
References
- ^ "Gap Inc.'s Global Footprint" (PDF). The Gap, Inc. Retrieved May 23, 2016.
As of the end of Q2 2015, Gap Inc. had 3,727 company-operated or franchised stores in operation across 52 countries.
[self-published source] - ^ Sciacca, Annie (May 23, 2016). "Gap decides not to keep its store workers waiting". San Francisco Business Times. Retrieved August 28, 2015.
- ^ a b http://www.gapinc.com/content/gapinc/html/media/pressrelease/2014/med_pr_gapincs_glenn_murphy_pass_reins_art_peck.html
- ^ a b c d e f g h i j "GAP INC 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. March 24, 2014.
- ^ "Gap Profile on Forbes". forbes.com. Retrieved March 26, 2015.
- ^ Legal name as stated in the company's SEC filings (such as its 2010 10-K report). For non-regulatory purposes the company usually refers to itself as "Gap Inc."
- ^ "Gap And Zara Battle For Top Spot - News Markets". Portfolio.com. September 11, 2008. Retrieved August 7, 2010.
- ^ https://web.archive.org/web/20100328133539/http://www.gapinc.com/public/Investors/inv_re_storecount.shtml. Archived from the original (PDF) on March 28, 2010. Retrieved May 23, 2016.
{{cite web}}
: Missing or empty|title=
(help); Unknown parameter|deadurl=
ignored (|url-status=
suggested) (help) - ^ "Gap Explores Alternatives, Including Possible Sale: CNBC's Faber". CNBC.com. January 8, 2007.
- ^ "Gap Inc.'s Glenn Murphy to Pass Reins to Digital Leader Art Peck as Next Chief Executive Officer". www.gapinc.com. Retrieved 2015-10-23.
- ^ "Motley Fool for Oct. 31". The St. Augustine Record. October 31, 2015. Retrieved November 13, 2015.
- ^ a b "Media - Press Releases". Gap Inc. Retrieved August 7, 2010.
- ^ Rusli, Evelyn M. (November 23, 2010). "In J. Crew Buyout, an Effort to Gain a Retail Visionary". The New York Times.
- ^ Paumgarten, Nick. The Merchant. The New Yorker. September 20, 2010.
- ^ Gordon, Meryl. Mickey Drexler’s Redemption. The New Yorker. May 21, 2005.
- ^ Jackson, Eric (December 2, 2011). "What Mickey Drexler Learned from Steve Jobs". Forbes.
- ^ "Best (and Worst) Leaders | BusinessWeek". Images.businessweek.com. Retrieved March 3, 2013.
- ^ "Paul Pressler's Fall From The Gap". Businessweek. Retrieved March 3, 2013.
- ^ "Gap CEO resigns after poor holiday season - Business - US business | NBC News". MSNBC. January 22, 2007. Retrieved March 3, 2013.
- ^ "CEO Pressler's out at Gap Inc." MarketWatch
- ^ "Gap flagship brand to be run by company veteran" MarketWatch
- ^ Cartner-Morley, Jess (May 5, 2011). "Gap sacks Patrick Robinson as chief designer". The Guardian. London.
- ^ Holmes, Elizabeth (May 6, 2011). "Revolving Door Spins at Gap". The Wall Street Journal.
- ^ "A Fashion Guy Gets Gap Back to Basics". Businessweek. August 6, 2008. Retrieved March 3, 2013.
- ^ "Gap closing stores in US". Jakarta Post. Associated Press. October 14, 2011. Retrieved October 15, 2011.
- ^ Mattioli, Dana (October 14, 2011). "Gap to Slash Its Store Count". The Wall Street Journal. p. B1.
- ^ "Gap Inc. Announces Plans to Open First Gap Stores in Brazil : RushPRNews - Newswire & Global Press Release Distribution". RushPRNews. Retrieved March 3, 2013.
- ^ Engel, Meredith (January 23, 2015). "Gap's Piperlime shop to close". New York Daily News. Retrieved December 24, 2015.
- ^ Moss, Hilary (October 6, 2010). "Gap Gets A New Logo (PHOTOS, POLL)". Huffington Post.
- ^ Moss, Hilary (October 12, 2010). "Gap Gets Rid Of New Logo". Huffington Post.
- ^ "Head of Gap brand out, outlet executive in line: source". Reuters. February 1, 2011.
- ^ "404 Not Found". Retrieved May 30, 2015.
{{cite web}}
: Cite uses generic title (help) - ^ "Gap Inc. Announces it will close Forth & Towne Store concept" (press release). Gap Inc. February 26, 2007.
- ^ Duxbury, Sarah (October 6, 2006). "Piperlime — the shoe fits, Gap wears it". San Francisco Business Times. Retrieved August 21, 2009.
- ^ Rosenbloom, Stephanie (September 22, 2008). "Gap Acquires Athleta for $150 Million". New York Times. Retrieved August 21, 2009.
- ^ "INTERMIX". Retrieved May 30, 2015.
- ^ Breakdown of net sales by Division from company 8Ks
- ^ Morning Edition (September 28, 2009). "Gap Inc. Co-Founder Donald Fisher Dies At 81". NPR. Retrieved August 7, 2010.
- ^ "Gap Inc.: Information from Answers.com".
- ^ "Research 1960s: Commerce - Bowling, Beatniks, and Bell Bottoms". www.BookRags.com. Retrieved May 30, 2015.
- ^ "Site Profile for gap.com (rank #238) | Compete". Siteanalytics.compete.com. Retrieved August 7, 2010.
- ^ "Error - LexisNexis® Publisher". Retrieved May 30, 2015.
- ^ "Gap Inc. 2016 Global Footprint" (PDF). May 23, 2016.
- ^ Shields, Amy (January 22, 2008). "Gap signs Greek franchise partner | News". Retail Week. Retrieved August 7, 2010.
- ^ Elbit Imaging to franchise Gap, Banana Republic in Israel By Robert Daniel, February 18, 2009
- ^ "Gap abrirá primera tienda en Chile e inicia desembarco en Sudamérica". La Tercera. November 17, 2010. Retrieved April 2, 2011.
- ^ "Pierwszy sklep Gap w Polsce powstanie w Warszawie". Warszawa.gazeta.pl. September 21, 2011. Retrieved March 3, 2013.
- ^ http://www.wsj.com/articles/gap-to-close-old-navy-in-japan-withdraws-earnings-forecast-1463689009
- ^ "GAP INTRODUCES INSPIRATIONAL MARKETING CAMPAIGN TO CELEBRATE FIRST ANNIVERSARY OF GLOBAL LAUNCH OF GAP (PRODUCT) RED". GapInc.com. Gap Inc. Retrieved March 10, 2007.
- ^ "Achtung, Bono! Activists See Red". NYmag.com. Retrieved October 27, 2007.
- ^ "Women Forced to Work". Global Exchange. April 1, 2000. Retrieved March 3, 2013.
- ^ https://web.archive.org/web/20150908060051/http://www.gapinc.com/social_resp/ifpr/faqs_body.shtm. Archived from the original on September 8, 2015. Retrieved February 4, 2016.
{{cite web}}
: Missing or empty|title=
(help); Unknown parameter|deadurl=
ignored (|url-status=
suggested) (help) - ^ 2007 World’s Most Ethical Companies | Ethisphere Magazine
- ^ a b . NLCNET https://web.archive.org/web/20080309041041/http://www.nlcnet.org/documents/Jordan_PDF_Web/04_Western.pdf. Archived from the original (PDF) on 9 March 2008.
{{cite web}}
: Missing or empty|title=
(help) - ^ "Gap pulls 'child labour' clothing". BBC News. October 28, 2007. Retrieved May 3, 2010.
- ^ Gap accused of child labor. CBS News. October 29, 2007.
- ^ Johnson, Kay; Alam, Julhas (April 26, 2013). "Big brands rejected Bangladesh factory safety plan". Yahoo! News. Retrieved July 30, 2013.
- ^ Edelson, Sharon (February 10, 2014). "Gap Readies Minimum Wage Increase". WWD. Retrieved February 20, 2014.
- ^ About Gap Inc.
- ^ Clare O'Connor (October 9, 2014). "Meet Art Peck, Gap Inc's New CEO, The Man Modernizing Retail's Old-Timer". Forbes. Retrieved May 30, 2015.
- ^ "Board of Directors". www.gapinc.com. Retrieved 2015-10-23.
- ^ "Gap Inc. Appoints Apparel Industry Veteran Tracy Gardner To Its Board Of Directors". www.gapinc.com. Retrieved 2015-10-23.
- ^ "Gap Inc. Appoints Cisco Systems Executive Padmasree Warrior to Board of Directors". www.gapinc.com. Retrieved 2015-10-23.
- ^ a b c d e f g h i j k l m n Gap Inc. Store Count by Brand
- ^ "Gap Inc". Retrieved March 3, 2013.
- ^ "GAP supera obstáculos y llega a México - Lifestyle". CNNExpansion.com. Retrieved March 3, 2013.
- ^ Fiba Group - Gap
- ^ "Al Tayer Group - Al Tayer Trends". Retrieved May 30, 2015.
- ^ "Home - Live Gap". livegap.cl. Retrieved December 31, 2015.
- ^ a b c "Gap Coming to Egypt, Morocco". Zacks.com. June 30, 2011. Retrieved March 3, 2013.
- ^ "Gap abre su primera tienda en Colombia | Negocios". Portafolio.co. Retrieved March 3, 2013.
- ^ City Mall directory
- ^ mall28.az. "Kişi geyimləri". mall28.az. Retrieved August 10, 2014.
{{cite web}}
: CS1 maint: numeric names: authors list (link) - ^ "Take a peek at Zagreb's Gap and Zara Home" (in Croatian). tportal.hr. November 4, 2010. Retrieved November 5, 2010.
- ^ "Gap Paraguay Home". Retrieved July 29, 2014.
- ^ "Our Story". Banana Republic. Retrieved March 3, 2013.
- ^ Fiba Group - Banana Republic
- ^ "Banana Republic - Bienvenido". Bananarepublic.cl. Retrieved December 31, 2015.
- ^ "Banana Republic entra al país con una tienda en Medellín | Negocios". Portafolio.co. Retrieved March 3, 2013.
- ^ "Gap Inc. Announces Third Quarter 2002 Results; Reports Earnings Per Share of $0.15".
External links
![](http://upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/30px-Commons-logo.svg.png)
- Official website
- Don Fisher - Daily Telegraph obituary
- 1969 establishments in California
- 1970s fashion
- 1980s fashion
- 1990s fashion
- 2000s fashion
- 2010s fashion
- American brands
- Clothing retailers of the United States
- Companies based in San Francisco
- Clothing brands of the United States
- Companies listed on the New York Stock Exchange
- Financial District, San Francisco
- Gap brands
- Multinational companies headquartered in the United States
- Retail companies based in California
- Retail companies established in 1969
- Underwear brands
- American companies established in 1969
- Clothing companies established in 1969