Blog: Gap trims back
Leonie Barrie | 29 February 2008
A continued emphasis on controlling costs and improving margins has helped Gap Inc to a 21% jump in fourth quarter profit, with the retailer promising to be even more thrifty in 2008 to cope with “volatile” economic conditions. Capital expenditures this year will be down 27% to $500m, it said.
Among the measures being planned are fewer new stores (down to 100 shops worldwide compared with 214 last year) and reductions to the size of many existing outlets, as well as cuts to its advertising budget.
But CEO Glenn Murphy understands that growth in gross margin dollars is not enough, and that until the retailer can start growing its sales it will not truly have turned the corner. Significantly, same-store sales – a key measure of a merchant’s health – fell by 5% at both Gap North America and Old Navy North America – the retailer’s two biggest chains.
However, to be fair to Murphy, who took the helm of the company in July, he is also trying to rectify a lot of problems inherited from previous management. He is working to simplify what he described as a “very complicated and bureaucratic culture” at Gap, and to put right past fashion missteps at the company which have sent core shoppers running to rivals in recent years.
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....
Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...
- Trump and the apparel industry – Infographic
- $1.7bn package to boost Pakistan clothing exports
- Mexico riots hit apparel retailers and shipments
- Outlook 2017 – What next for apparel sourcing?
- Is China about to burst its apparel trade bubble?
- Cambodia clothing exports at risk from Brexit
- MAS Holdings planning second industrial park
- Apparel brands urge Bangladesh PM to address wages
- American Apparel to shutter all stores?
- JC Penney latest retailer to shutter stores?
- Global apparel markets: product developments and innovations, October 2016
- Anti-odour clothing: fresh fashion for an active lifestyle
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022