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    GAP5 Month Same Store Sales Performance Is Not Good.

    2015/6/8 15:25:00 52

    GapSame Store SalesPerformance

    Data show that in May, GAP group earned $1 billion 250 million, an increase of 1.6% over the same period last year.

    As of the first quarter of May 2nd, the group's income was 3 billion 657 million US dollars, down 3.1% compared to the same period last year. Net profit was 239 million US dollars, down 8.1% compared with the same period last year.

    GAP brand has become a drag for the group. In the first quarter, GAP same store sales fell 10% year-on-year.

    The Old Navy Old Navy brand of the group performance engine grew by 3% in the same quarter.

    GAP's performance has been left behind by fast fashion brand clusters.

    Japan's high street brand UNIQLO sales increased 12.3% in the same store in May; the Inditex group, the ZARA parent company of the world's largest apparel retail group, announced its annual sales increased by 8.3% in March this year; the second largest clothing retail group H&M increased 6% in the first quarter of 2015.

    Analysts believe that the core consumer group of fast fashion brands is already dominated by "post-90s", which means that brand is the time to make new arrangements for brand positioning and cost performance.

    At the end of last month, ZARA sold the best store in Xidan, which was rebuilt in the store. It will put the fashionable style of "90 after" consumers in a large part of the door, and add a complete set of collocation and glasses, bags and other accessories.

    The former core consumer group, who has entered the white-collar stage, is suitable for them.

    Ladies' clothing

    It is arranged in the deepest position and the two layer.

    UNIQLO launched a large-scale T-shirt series UT with cartoon and print design during the summer season, and offered a discount at a price of as little as 39-79 yuan.

    H&M recently announced that it will be released in autumn and winter in November with eleventh.

    Designer

    The limited series of cooperation.

    In the face of various attempts by competitors to increase selling points, GAP appears to be very poor.

    Recently, however, GAP has been working with Birchbox, an American cosmetics supplier, to open cosmetics counters in 7 stores in the US, hoping to bring some surprises to consumers.

    At the same time, the analysis pointed out that GAP may close some of the physical stores and increase the layout of e-commerce in the future.

    It is understood that

    GAP

    The period from design to store is 10 months, about 3 times that of ZARA and H&M.

    Its new CEO has said it will shorten the cycle to 30 weeks, but it will still be about two times as long as its competitors.

    The new CEO admits that the main reason why GAP is unsalable is its unsightly style and lack of self-cultivation.

    At present, from the Chinese market, the GAP group's competitive advantage is mostly in the promotional discount stores or its low price brand Old Navy, which has increased 93.5% in the Asia Pacific region in 2014.

    However, the brand entered China only in March last year. From its high-level lineup, the Chinese market will be an important target for GAP to turn over by Old Navy.


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