After an unsatisfactory slump of 4% in the July sales of major apparel retailer Gap Inc and a boost on the company’s sales back in June courtesy of its off-price Old Navy brand that increased their sales at 5% going beyond analysts’ expectations of a 3.3% drop, another low hits the apparel brand with another huge fall from a steady sales.
Throughout July, a comparable 14% drop in sales has been felt from Banana Republic and another 4% from Gap itself. It was also according to polls that predicted a 0.3% plummet from Banana Republic’s sales.
The horror for the brand doesn’t stop there as trading for Gap Inc. shares experienced a slump of more than seven percent. It was also the day before that the company released a report of the July sales drop despite a positive forecast on the company’s outlooks from experts and analysts.
The recent success of the company was also said to have been the work of Stefan Larsson who is the Former President of Old Navy. Larsson who left the company last year is now Ralph Lauren’s CEO.
After the plummeting sales, analysts are now stating that it may take some time before the brand could get back up on its feet given that the status of the current sales. Notwithstanding these reports, Susan Anderson
One of the company’s brands banana republic has been also reported to have improved the quality of their products and should help save the company from completely falling apart.
Individual retail store strategies a factor in dipping sales
In the middle of the ongoing issues to be addressed by Gap Inc, a number of Banana Republic retailer stores has also been reported to have been ignoring customer concerns and hasn’t been keeping up with their best interests.
A UBS analyst in a released note that the brand remains challenged with a big miss. Just this week of the month, the brand has already opened up discounts for its fall collection. Up till this point, it has been noted that the brand has yet to get rid of its winter apparel on numerous
Gap also has yet to keep up with increasingly aware young consumers who prefer a cheaper and much more accessible fashion from the internet, a phenomenon that lets you buy trending fashion from social media accounts directly.
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