The Gap Essay, Research PaperThe Gap Inc.When I foremost thought bout what company I would wish to research, I look down andfixed the neckband on my shirt. Then it dawned on me that since I love manner, I could makeit on the spread. Who had the power ( and the apparels ) to do the NYSE take its first insouciantFriday? The Gap & # 8212 ; the omnipresent vesture retail merchant that runs over 3,300 shops, largely inthe US, but besides in Canada, France, Germany, Japan, and the UK.
Its flagship Gap shopsoffer a broad assortment of work forces & # 8217 ; s and adult females & # 8217 ; s insouciant vesture ( T-shirts, denims, khakis ) . Thecompany & # 8217 ; s other ironss include Banana Republic, GapKids, babyGap, and its fastestturning, Old Navy. Each concatenation besides has an on-line embodiment. The Gap is addingGapBody intimate dress shops and eating houses in flagship Old Navy shops. All Gapvesture is private-label ware made specifically for the company. The initiationFisher household owns about 34 % of the company.Sing that Gap is a interior decorator trade name, its rivals would besides be designer namesin manner.
Some rivals are American Eagle, Spiegel, and Abercrombie and Fitch.The article, ? Gap Mishap & # 8211 ; But Still Deserves a Expression, ? by Lee Clifford, states that theGap and its subordinates make up some 5 % of all the apparels bought in the Unitevitamin D Statesand it goes on to state that finally that figure will leap to 8 % . For right now,nevertheless, the Gap is traveling through some tough times. The San-Francisco based companymissed its net incomes projections for both the first and 2nd quarters this twelvemonth and scaledback outlooks for the remainder of 2000. Shop gross revenues in August fell 14 % , doing the stockto travel down 52 % to day of the month. Dan Prislin, the CEO, ? These are turning hurting, non ruddy flags.
?Most all of the harm is coming at the disbursal of Old Navy. It has been labeled,? job kid, ? by Prislin. Ad runs were botched and sells have beenenduring because of the ware they are seting out.However, there is some good intelligence coming out of the Gap cantonment. It is poised tocapitalize on the immense business-casual tendency. Old Navy, which is pitching up to make outto the 25-plus crowd, has incorporated a more sophisticated line of work apparels for work forcesand adult females. The company is remaining on top of the new-store gaps.
This twelvemonth entirely itwill hold added up 700 new locations.The article offers one piece of advice, that the stock is highly inexpensive right now, andif you are willing to hang in at that place through this small unsmooth topographic point for Gap it will one twenty-four hours thereturns will be great. So don? T give up on the Gap.