Dive Brief:
- The Gap is closing around a quarter of its North American stores, but the move might be signaling a deeper-rooted problem with the brand itself.
- The retailer’s most recent ad campaign, “Dress Normal,” isn’t having the impact of its earlier image of hip innovation in how to advertise retail goods.
- Another potential negative impact on the Gap brand is that the store closures increase the ratio of Gap Factory outlet stores among its brick-and-mortar locations.
Dive Insight:
The news this week is The Gap’s parent company, Gap Inc., is closing 175 underperforming North American flagship retail locations. But this business decision might just be a symptom of a larger issue with The Gap’s brand. Ruth Bernstein, founder and Chief Strategic Officer, YARD, a strategic image-making agency, believes the retailer’s stale brand identity might be a more looming issue. Bernstein told Adweek, “Gap was a leader and innovator in the '90s. They single handedly reinvented the way retailers advertised through their entertaining khakis-swing-singing-dancing spots. Times have certainly changed, and the competition that once emulated them has overtaken their position."
Bernstein also referred to The Gap’s recent “Dress Normal” ad campaign in the same article saying, "They need to get their mojo back by resurrecting their innovator spirit. They were never about doing things 'normally,' but always about the American spirit of individuality, which made the brand so simply, brilliantly, strong."
The announced store closures have another brick-and-mortar-based impact on the brand as well -- by closing around a quarter of its flagship locations, Gap Inc. increases the ratio of Gap Factory stores still open for business, a state that could dilute the value of the brand in consumer’s eyes.