Middle Child Syndrome

Three things come to mind whenever I think about GAP: khakis, cotton-stretch white t-shirts, and a realization that I have not stepped into that store in over 10 years. When I was younger, you could have looked through my closet and I am willing to bet that over 40% of the items I had were from GAP – virtually the majority of my wardrobe was purchased there. Now, I own nothing from GAP. So what happened?

I’ve read countless articles describing how GAP lost direction with their clothing line by trying to please too many types of customers. However, I am still not convinced that this was the entire reason behind the utter disappearance of GAP from my wardrobe.

Founded in 1969 by Donald Fisher, GAP currently has over 3000 stores spanned across the globe. They targeted the ‘gap’ generation, hence the name, in providing the basics to every wardrobe. Building on their continued success, in 1994 Gap Inc. created Old Navy – a clothing store targeted at price conscious families and younger customers. And in 1983, Gap Inc. acquired Banana Republic, which appeals to more high-end customers, offering “modern, accessible luxury”.

With customers having to decide the tradeoff of price versus quality, the retail value proposition (RVP) is more important than ever. Currently, the strategic placement of GAP’s products lies between Old Navy and Banana Republic. I walked into a local store to find that their RVP was all over the map. The convenience and selection of GAP was top notch – I could find everything I was looking for. And GAP has a huge selection; you can find almost everything from blue jeans to swim wear. However, when it came to experience and price, that’s where things got a bit messy. After trying on a few items, I found they were extremely over priced based the fit and quality. Finally, my experience at GAP was lackluster. Importantly, I was not inspired by anything of the clothing items I saw – nothing seemed to have a ‘spark’. And the store’s interior had the same white walls and boring displays that I remember from 10 years ago.

Unless Gap Inc. considers GAP stores as redundant, and chooses to eliminate them from their line; a couple of things need to happen. First, GAP needs to target a core clientele, and stick to it. In other words, no more “trying to please everybody”. By successfully targeting a niche market, people will regain confidence in shopping at GAP. Secondly, they either need to lower their prices or increase the quality. By providing a great product to either price-conscious customers, or quality-seeking clientele, GAP will be able to put its label back in people’s closets. For retailer positioning, death lies in the middle – which is exactly where GAP is currently sitting.

sources:

http://en.wikipedia.org/wiki/Gap_(clothing_retailer)

http://www.gap.com/

http://www.nytimes.com/2009/12/06/t-magazine/mens-fashion/06well-gap.html?_r=1&ref=gaptheinc

http://www.brandchannel.com/features_effect.asp?pf_id=86