Gap Swot Analysis

19 Pages 4635 Words

SWOT Analysis



• Brand name recognition and equity

Gap, Old Navy and Banana Republic are three of the most well known brands in retail. The number

of stores by location at the end of fiscal 2001 and 200 was 3,079 and 2,848, respectively.

Gap is credited with creating the “casual basics” category of apparel, which includes khakis, t-shirts,

button-down shirts, knit tops and other comfortable separates. Gap revolutionized the specialty

apparel category and quickly grew to become the industry leader and spawned several imitators.

In general, the specialty retail apparel industry is characterized by stores that either sell only clothing

or a combination of clothing and personal care items. It is this pinpoint focus on apparel and style

products that differentiates the current retail store format from its predecessor, the department store.

Prior to the opening of the first enclosed shopping mall in Edina, MD in 1956 most clothes shopping

was done primarily in department stores. Despite offering the convenience of being able to shop for

multiple purposes under the same roof, such stores by definition lacked any real focus on clothes and

thus tended to stock traditional and conservative styles. However, during the 1960’ and beyond as

clothing became more associated with self-expression the department store “look´ became less

appealing. It was during this period that Donald and Doris Fisher opened the first Gap in San

Francisco. The subsequent rapid proliferation of Gap retail outlets was an indicator of public’s

readiness for alternatives to traditional department store clothes. Several entrepreneurs, including The

Limited’s Leslie Wexner, followed the Fishers’ lead. Then, during the explosive growth of mega-malls

in the early to mid-1980’s, the concept of this specialty retailer really took off. Retailers realized that

they did not have to offer ...