Gap, the company that helped make khaki beige a fashion statement, is to review its Gap and Old Navy brands after the retailer revealed disappointing sales in December and expected increased pressure in January.Total sales for December were down by 10% on results posted two years ago, at $2.34bn. The company has been in the middle of a two-year rebranding operation but has admitted it has failed and will review its strategy at the two divisions.
Gap has suffered in recent years and each new set of financial results have brought new problems as the San Francisco retailer finds competitors have emulated its essential casual style of T-shirts and khakis and at a cheaper price.
Alternative strategic decision, helped by ongoing speculation in the market, is that Gap Inc. is ever closer to a takeover is being stoked by a news report that the struggling retailer has hired the investment firm Goldman Sachs to consider such offers or other dramatic changes.
A story to follow…