Unlike some of its competitors, Gap has kept its focus on what works in apparel. Gap's creative team works to restock Gap shelves with new products every six weeks, keeping the retail ahead of imitators in the fast-paced fashion industry. The company isn't shy about pouring money into advertising.
Perhaps even more important is the company's "market segmentation" strategy. Rather than integrating the various customers, income levels and lifestyles that the Gap, Banana Republic and Old Navy collectively target, each has thrived as a distinct entity - while avoiding the constant rumor of a sell-off. This strategy has allowed for three sales avenues, three growth strategies and three different audiences; putting Gap Inc. in equal competition with the sophisticated style of Ann Taylor and the bargain clothing at J.C. Penney. In its first four years of operation Old Navy topped the charts with $1 billion in annual sales, an unmatched feat in the history of specialty apparel retailing.
Perhaps even more important is the company's "market segmentation" strategy. Rather than integrating the various customers, income levels and lifestyles that the Gap, Banana Republic and Old Navy collectively target, each has thrived as a distinct entity - while avoiding the constant rumor of a sell-off. This strategy has allowed for three sales avenues, three growth strategies and three different audiences; putting Gap Inc. in equal competition with the sophisticated style of Ann Taylor and the bargain clothing at J.C. Penney. In its first four years of operation Old Navy topped the charts with $1 billion in annual sales, an unmatched feat in the history of specialty apparel retailing.
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