Retail news that keeps industry pros in the know
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Gap’s packing its bags, saying its goodbyes, and leaving home behind—home being your nearest mall. Yesterday, Gap said it will...
- Close ~350 stores across its namesake and Banana Republic brands.
- Generate 80% of revenue from off-mall stores and e-commerce by 2023.
Emphasizing digital sales is retail’s Pomodoro Technique: It’s nothing new or particularly special, yet we’re still a little surprised when it works. In Q2, Gap gained 3.5 million new customers and its digital sales grew 95%.
Meanwhile, moving stores closer to grocers and nail salons has timely advantages. Open-air centers are more appealing to virus-wary consumers...and rent may be lower than what Simon currently says.
Another outlet: This one goes out to anyone who grew up at the Exchange instead of the mall. () Gap is also expanding its wholesale presence by partnering with 50+ stores on U.S. military bases.
My takeaway: Cutting underperforming distribution channels could bring Gap closer to its customer—but to keep them, it’ll need to take the same shears to its product mix.