GAP Online Sales Account For 10% Betting On Electricity Providers And Emerging Markets.

American Apparel retail giant

The group announced that the company has cooperated with Zalando, Europe's largest clothing accessory, and will sell its brand GAP, Old Navy and other brands on the electronic business platform from next May.

It hopes to realize rapid expansion in Europe with the help of e-commerce.

As early as 2007, GAP tested online sales, and online sales account for more than 10% of total sales.

These "new" drivers are the decline of performance.

In the third quarter, Gap brand sales in the same store showed a 5% decline, while Old Navy recorded only 1% growth, while Banana Republic sales remained flat, but they had been stagnant for 7 consecutive quarters.

In fact, the weakness of GAP began to appear ten years ago. In 2004, its sales volume was $15 billion 900 million, and by 2012 its sales volume was only $15 billion 700 million.

While H&M, Zara and other fast fashion brands are competing for their target customers and market share in the US market, Gap's dominance in the industry has been greatly affected.

The group's predecessor, CEO Gleen Murphy, implemented a radical reform in order to revitalize its business, but the effect was not obvious.

Murphy announced its resignation in October.

Before the group's new CEO Art Peck was mainly responsible for e-commerce, he saw the explosive force of online channels, so the emerging market as a breakthrough point.

In October this year, the number of GAP brand shops that had entered China for four years reached 100, and 10 new outlets will be opened by the end of this year.

Old Navy landed in Shanghai in March this year, and recently extended its tentacles to Shenzhen, Guangzhou, Beijing and other places.

However, with H&M,

In contrast, the total number of GAP brands in China is still at the bottom.