GAP New CEO Brewing Shop

According to the latest news from US media, Gap Inc. (GPS.NYSE) CEO Art Peck, who took office earlier this year, said it was looking for a new way to redesign its brand goals.

This involves what Peck calls 3 sales and upgrading companies.

Mobile terminal and full channel retail capability.

The new CEO revealed that 3680 stores around the world will "inevitably" be reduced in size and quantity.

This old American brand was founded in 1969.

Tycoons were once popular in the world.

Now, it has five brands (Gap, Banana Republic, Old Navy, Piperlime, Athleta) and many chain stores, but it has been in a weak state recently.

Gap recently released its sales performance in February, with total revenue falling 1% to $918 million, while same store sales decreased by 4% compared to the same period last year, lower than analysts expected to increase sales by 1.4%.

The company entered the Chinese market in November 2010. As of last year, the number of stores in mainland China, Hongkong and Taiwan will exceed 100.

According to the data provided by RET, China commercial real estate research center, Gap has 97 stores in China in the three quarter of last year, and 10 new stores in the fourth quarter.

Despite the rapid expansion of Gap in the Chinese market, many apparel retailing analysts are not optimistic about the brand. In their view, in the competitive Chinese market, the style of Gap is not suitable for the Asian style, the price is not competitive, and the new product is not updated fast enough.

Gap seems to have realized his shortcomings and intends to make adjustments.

GAP now has 10 months from product design to store entry, and this cycle is three times that of Zara and H&M.

Peck hopes that the next cycle will be reduced to about 30 weeks. He points out that reducing product design to store cycle is equally important, and this is also the key to competition with other fast fashion products.

In addition, he is still trying some new ideas, such as updating the sample room, mobile phone registration mode, electronic wall display mode, clothing RFID identification technology, and possibly setting up Gap vending machine.

A person close to Gap said in an interview with reporters that she had never heard of Gap's plans to scale stores in China. On the contrary, China was regarded by Gap as the most dynamic market in the world, and Gap was confident of the Chinese market.

According to the person, Gap is expected to add 30-40 stores in China in 2015.