Iconic San Francisco Retailer Gap Forges Road Ahead
Dr. Kirthi Kalyanam, RMI Executive Director tells KCBS Radio that if Gap has to close some stores permanently due to the pandemic, it will likely pull through because of its portfolio of brands that includes Old Navy, Banana Republic and Athleta.
"A its peak, the Gap was a talent factory for the Bay Area, very much like what Google is today," Santa Clara University Retail Management Institute Executive Director Kirthi Kalyanam said. "This was a very important contribution of the Gap and the Fisher family."
"Even if the Gap brand itself is significantly cut back, it might be a good idea that they have these other portfolio brands," Kalyanam said. "And I can see them becoming more focused, more narrow, more nimble and actually more competitive because of this."
Kalyanam said the company’s efforts now need to be in one specific area.
"When they go forward, technology and e-commerce become central to what they do, as opposed to the past when it has not been central to what they do," Kalyanam said.
The Gap has "furloughed the majority of store teams" in the U.S. and Canada, eliminated positions at the corporate level and cut executive pay.
According to the company's website, the Gap operates in 90 countries and operates over 3,100 stores with 400 franchise stores.