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Five consecutive quarters of diving performance GAP brand to accelerate the layout of the Chinese market

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Five consecutive quarters of diving performance GAP brand to accelerate the layout of the Chinese market

Release date:2017-03-27 00:00 Source: Click:

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Recently, the U.S. apparel retailer GAP released the financial report, the first quarter revenue fell 6%. In addition, it also announced that it will close 75 Old and Banana Republic stores outside North America, more attention to potential areas of the Navy.

As of the first quarter of April 30, 2016, the U.S. apparel retailer GAP performance fell again, China Daily reporter learned that this is the five consecutive quarter of GAP diving performance.

According to reports, the first quarter GAP revenue fell to $3 billion 440 million from $3 billion 660 million in the same period last year, less than market expectations of $3 billion 540 million, a decline of nearly $6%. Same store opened more than a year store revenue fell 5%, while the previous market forecast decline of only $2.6%. To brand classification, the same name brand GAP sales fell 3%, Banana Republic fell by, Old decreased by Navy by 6%. GAP also said that it may not reach the earlier annual profit target.

To this end, GAP announced that it will close 53 Old stores in Japan, as well as the 22 Banana Republic stores in. Closed shop is expected to save $275 million in pre tax expenses for GAP, the group's operating profit margin of 200 basis points to improve the space. Currently, GAP has 3700 stores in the world, with GAP, Banana Republic, Old Navy, Piperlime, Athleta, the top five brands.

Industry analysts believe that, like other department stores, from online fashion retailer competition, consumer spending slows the overall effect and department store traffic fell and other factors, GAP group's sales have been a tremendous impact.

GAP Group believes that the Old Navy brand will focus on the core of the group's headquarters in North America, as well as Mexico and China, in addition to the international franchise business. Despite a large number of stores in the Japanese market, but Japan is still an important market. GAP group has approximately 200 GAP and Banana Republic stores in japan.

According to reports, GAP optimistic about the Chinese market, and will aim at China's two or three tier cities. At the same time, in the global scope of the shop, GAP said that this year will open 40 new stores in china. Stakeholders pointed out that in order to maintain the growth of performance, fast fashion brands only expand the number of categories and stores. Stores in the first tier cities have been saturated, the new store can only open to two or three cities.

GAP chief executive officer Art, who took office in February 2015, said at the annual general meeting on, the group may consider the future of the 亚马逊, in order to seek recovery. In fact, the group has been considering opportunities outside the traditional stores. The entire apparel industry is now developing rapidly, so we need to speed up the pace of change, including the expansion of product size and enhance the ability of global operations. If you can seize every opportunity to explore their strategic advantage, GAP's brand can use the company's ability to serve customers in various regions and channels."

In fact, in the international fast fashion brand, GAP belongs to a group of early access network shopping brand, which began in 2010 and China local company Shanghai garment is cooperation by the latter on behalf of the operators of online business, from 2012 to 2013, GAP online performance increased significantly. In the GAP released as of February 1, 2014 earnings, the group's annual online sales of $2 billion 260 million, an increase of 21%. But subsequent quarterly reports, the performance of the gradual decline.

Analysts believe that GAP faces from H&M UNIQLO and other fast fashion business competition in the supply chain speed, GAP slightly inferior, did not respond to adjust the trend of fashion, fashion design and lackluster GAP, brand appeal as before.

It is reported that the recent UnionPay business and GAP reached a comprehensive strategic cooperation, providing nearly 130 GAP stores in the country to provide a comprehensive solution based on traditional bank card payment.

It is understood that the POS terminal of GAP stores UnionPay business layout will open the "full payment" mode, not only can accept payment by traditional bank card, mobile phone can accept payment scan code and ApplePay, Samsung Pay and other "Pay", the NFC mobile phone near-field payments. In addition, through the UnionPay business with the brand of cross regional online return service, future GAP customers want to return, as long as the choice from their stores recently, will be able to complete the replacement return; in the field also buy Never mind, in the country of all GAP stores can barter goods.


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