Will The Gap Exist In The Future?

The Gap has had a lot of turnover in the past year and now it also dismissing 1,800 associates. That is about 2% of the company’s global workforce. It is a heftier dismissal than what took place in September 2022 when 500 co-workers were let go.

Behind this upheaval – the company has under-performing stores, and a number of executives have left the company. Departures include the company’s Chief Growth Officer Asheesh Saksena, Athleta President and CEO Mary Beth Laughton, Chief People Officer Sheila Peters along with Nancy Green (who was CEO of Old Navy) and Sonia Syngal (who was CEO of Gap Inc.) Many of the dismissals are being orchestrated to a great extent by interim CEO Bob Martin. He has been in that position for almost a year.

Time is running out for the Gap.

There is no time to waste. The company needs fresh, creative leadership to run the multi-channel, multi-brand organization. It does not need a Chief Growth Officer since the head of each brand (and that includes The Gap, Banana Republic, Old Navy and Athleta), should be the source of innovative ideas for its respective business. Managers should know what customers want and quickly have their stores reflect timely merchandise. Last year’s ideas are not what post-pandemic young customers want.

Bob Martin joined The Gap after 40 years with Walmart. He was CEO of the International Division of Walmart and, prior to that, also held leading positions in a number of key Walmart departments. He joined The Gap Inc. board in 2002 and became the lead director in 2003. He became executive chairman in 2018 and now oversees the whole board of directors.

On July 11, 2022, when Sonia Syngal retired after 18 years of leading the company, one would have hoped that a replacement would be found. It is not easy to manage this $15 billion company. It needs a leader with a vision for future growth. Jeans have always been the backbone of the company and should continue to be so since stretch jean fabrics in color are in demand. Thinking creatively – there is the opportunity to have jean jackets with school emblems that could be sold in local stores; this is just one idea to make jeans-wear a local best seller. Another thought comes to mind after talking to my acquaintance, Rowanda. She tells me that she does not like Gap jeans since they do not fit her. Could be, maybe there should be free tailoring in the store. I remember Nordstrom having tailors in the New York men’s store window to promote alterations. Bottom line, there is a need for a new and exciting twist to regain customer interest.

There are several companies that are seeking a clearer understanding of their future as well. Consider Kohl’s; it is being led by a savvy leader, Tom Kingsbury, and taking steps to ‘reinvigorate’ its stores. Bob Martin and Tom Kingsbury know that you have to motivate the salespeople to proudly shout about the merits of their company’s products.

Long term, success needs to take into consideration that merchandising decisions must consider the target audience and develop products that appeal to their preferences. Paula Rosenblum suggests that people actually want to buy when marketing programs present new products and highlight changes.

POSTSCRIPT: An interim CEO who has been with the company for 20 years is not likely to come up with a new vision. That institutional knowledge is useful but what is needed is a young whippersnapper who will bring fresh thinking to develop and then market the company’s new looks. Coming up with a redo of 1969 labels is a nostalgic recreation of the past and not sufficient. We are in a new age, and I hope the company will go forward.