GAP Shop And Layoffs. No Minimum Sales Promotion.

In the near future, it can be described as the darkest day of Gap. It announced that it would close 175 stores in North America, accounting for 1/4 of the total number of shops. This is a more objective figure, and it will also cut 250 employees at headquarters. So far, the brand name of the largest clothing retailer in 1969 is facing severe challenges.

Prior to that, Gap also made a lot of efforts to save the past glory of Gap, such as developing cosmetics product line, no lower limit sales promotion, paying attention to the electricity supplier, changing the CEO, etc., but still did not get rid of the fate of the store. Next, it will copy the successful mode of its brand Old Navy.

You may not know that Gap is a cowboy. The brand that has been established for nearly 50 years has just announced that it closed 175 stores in North America (accounting for 1/4 of the total number of shops). Only 140 will be closed this year, and 250 employees from headquarters will be cut off.

The Gap group, the parent company of Gap, the largest clothing retailer in the United States, is facing serious challenges.

After the implementation of this measure, the number of Gap stores in North America will be reduced from 977 to 800, including 500 stores and 300 outlet stores.

But Gap will remain in more than 50 countries, more than 1600 direct or authorized stores worldwide.

No matter how many posters and how to create an atmosphere, GAP's weak sales figures in May show that

Sales in the same store declined for 13 consecutive months, affecting Gap group.

Down 1%.

The main brand Gap is becoming the brand of the whole GAP group.

In the first quarter of May 2, 2015, GAP income was recorded at 3 billion 657 million US dollars, down 3.1% from 3 billion 774 million US dollars in the same period last year. Net profit was 239 million US dollars, down 8.1% from 260 million US dollars in the same period last year; earnings per share declined from 0.58 US dollars to 0.56 US dollars in the same period last year, decreasing by 3.4%.

The root cause of the decline in Gap performance is also the old brand.

From materials to design are very traditional.

The core strengths of ZARA and H&M are fast response design and supply chain, in place marketing, attracting young 90's audiences by various categories and fashion sense, and the core advantage of UNIQLO is actually the new fabric research and development and production retail mode.

The fleece, feather and down of UNIQLO, and Heatteck, are all materials of technological content. They not only have competitive advantages, but also can reduce costs and attract more customers than ZARA and H&M.