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Gap Inc.

From Alfawiki
Gap Inc.
Company typePublic
IndustryRetail (clothing and accessories)
FoundedAugust 21, 1969; 57 years ago (1969-08-21) in San Francisco, California, United States
FounderDonald Fisher, Doris F. Fisher
Headquarters
San Francisco, California
,
United States
Area served
Worldwide (43 countries as of 2018)
Key people
Robert J. Fisher (Chairman), Zac Posen (Creative Director for Gap and Chief Creative Officer for Old Navy)
ProductsClothing and accessories
Number of employees
95,000 (2023)
Websitewww.gap.com

Gap Inc., widely recognized as The Gap, Inc., is a U.S.-based multinational retailer specializing in clothing and accessories. Established in 1969 by Donald Fisher and Doris F. Fisher, the company is headquartered in San Francisco, California. Gap Inc. oversees four primary brands: Gap, Banana Republic, Old Navy, and Athleta. It stands as the largest specialty apparel retailer within the United States and ranks third worldwide by the number of international stores, following Inditex Group and H&M. As of early 2023, the workforce totals around 95,000 employees.

The Fisher family retains considerable ownership stakes and strategic influence; Donald Fisher served as chairman until 2004 and remained on the board until his passing in 2009. His wife and son, Robert J. Fisher, also hold board positions. Robert took over as chairman in 2004 and acted as interim CEO in 2007 before Glenn K. Murphy assumed the CEO role until 2014. Between 2015 and 2019, Art Peck led as CEO, succeeded by Sonia Syngal in March 2020. Syngal resigned in July 2022, with executive chairman Bob Martin stepping in as interim CEO. In February 2024, American fashion designer Zac Posen was appointed Creative Director for Gap and Chief Creative Officer for Old Navy.

History

In 1969, Don Fisher, a commercial real estate broker from California, partnered with Walter Haas Jr., then-president of Levi Strauss & Co., to emulate the successful retail approach of "The Tower of Shoes" by exclusively selling Levi's products. This strategy led to the creation of Gap, a name suggested by Fisher’s wife Doris, inspired by the concept of the "generation gap." The store offered every style and size of Levi's jeans with a promise of overnight restocking from Levi's San Jose warehouse. Levi's further supported Gap's marketing efforts by underwriting half of its radio advertising expenses.

The inaugural Gap store opened its doors on August 21, 1969, in San Francisco, featuring Levi’s jeans alongside LP records to appeal to teenage customers. By 1971, Gap had established its headquarters in Burlingame, California, expanded to over 25 locations by 1973, and extended its presence to the East Coast. In 1974, the company launched its own line of private label merchandise.

During the 1990s under CEO Mickey Drexler, Gap pursued a more upscale market positioning but was dismissed in 2002 following excessive expansion and declining sales performance. Subsequently, Robert J. Fisher appointed Paul Pressler as CEO; Pressler implemented store closures and debt reduction measures but was unable to reclaim market dominance. After underwhelming sales results, Pressler resigned in 2007 and Robert J. Fisher temporarily took over.

That same year, Marka Hansen was named head of the Gap division while Old Navy reduced expenses through managerial layoffs. In July 2007, Glenn Murphy became CEO and introduced designers such as Patrick Robinson for Gap Adult and Todd Oldham for Old Navy; however, Robinson was let go in 2011 after failing to increase sales despite international acclaim. Also in 2007, Ethisphere honored Gap as one of the "World's Most Ethical Companies."

Confronting operational challenges, Gap announced plans in 2011 to shutter 189 U.S. stores by 2013 while pursuing growth opportunities in China and Brazil. The company discontinued its Piperlime brand in 2015 to concentrate on its core labels.

In September 2018, Gap debuted Hill City—a men’s athletic wear brand—but discontinued it by mid-2020. Shortly thereafter, Gap entered a prominent decade-long collaboration with Kanye West’s Yeezy brand that generated $34.9 million in media exposure value.

The COVID-19 pandemic accelerated store shutdowns; initially announcing over 225 closures for Gap and Banana Republic in 2020, this number expanded to approximately 350 by 2024 to reduce reliance on mall locations. That same year saw a partnership with Afterpay aimed at enhancing digital shopping experiences.

To bolster e-commerce capabilities, Gap invested $140 million in a Texas distribution hub during 2021 and acquired Drapr to implement virtual try-on technology. The company also expanded its Gallatin, Tennessee facility with automation upgrades and increased staffing to meet rising demand.

In September 2022, Gap ended its partnership with Yeezy while cutting roughly 500 corporate positions worldwide amid profitability challenges; additional layoffs followed in April 2023. The company exited the Russian market due to limited brand traction.

Gap has committed to talent development through its Create With Audacity program supporting emerging designers alongside collaborations with ICON360 and Harlem’s Fashion Row to foster diversity. It also launched the Women + Water Collaborative with partners including Cargill, GSK, and WaterAid to improve water access initiatives in India.

In May 2024, Gap introduced a limited-edition collection with California-based Dôen celebrating sisterhood.

On August 22, 2024, Gap updated its stock ticker symbol from "GPS" to "GAP," reclaiming the symbol formerly used by A&P until that company's bankruptcy in 2010.

The trademark for the name "Gap" is owned by Gap Inc., with the original application submitted on February 29, 1972, covering retail clothing store services and officially registered in October 1972. An additional trademark specifically for shirts was filed earlier in 1970 and obtained registration in 1976. Both trademarks are held by Gap (Apparel), LLC, headquartered in San Francisco.

In 2010, Gap unveiled a redesigned logo that incorporated Helvetica typeface alongside a smaller blue box, aiming to refresh its brand identity. However, widespread negative reactions prompted the company to restore the traditional "blue box" logo within just one week. Marka Hansen, the executive who led the redesign effort, resigned soon after the reversal.


Banana Republic

Purchased in 1983, Banana Republic evolved from its original safari-inspired theme into a high-end apparel brand by the late 1980s, thereby broadening Gap's reach into the luxury market segment.

Old Navy

Introduced in 1994 as an affordable clothing option, Old Navy quickly became a major revenue driver for Gap Inc. In February 2019, Gap announced intentions to separate Old Navy into an independent entity; however, this plan was reversed in January 2020, keeping Old Navy within Gap’s corporate framework.

Athleta

Founded independently in 1998 as a women’s activewear label, Athleta was acquired by Gap in 2008. The company opened Athleta’s first physical retail location in 2011, expanding beyond online sales to capture the growing demand for performance-oriented women’s athletic apparel.

Forth & Towne

Launched on August 24, 2005, Forth & Towne represented Gap’s fourth retail concept targeting women aged 35 and older. After an 18-month pilot period, the brand was discontinued in February 2007 due to unsatisfactory sales results.

Gap originally focused on younger demographics, with its name reflecting the generational divide at the time. Initially selling Levi Strauss & Co. products exclusively, Gap introduced its own line of jeans in 1973 to establish differentiation from department stores. Today, Gap's overarching strategy serves a wide demographic range, while its subsidiaries cater to specific markets—Banana Republic providing refined and casual styles and Old Navy emphasizing affordability and trendy options for families and younger consumers.

Although criticized for standardized store layouts, Gap prioritizes adapting store formats to local markets through varied retail concepts. Its website www.gap.com attracts more than 18 million visitors annually, reinforcing its digital presence. In 2018, a marketing campaign featuring a young girl wearing a hijab generated controversy in France, underscoring cultural sensitivities impacting global brand perception.


International presence

As of June 2018, including both company-operated and franchised locations, Gap Inc. maintained stores under the brands Gap, Banana Republic, Athleta, Intermix, or Old Navy across 43 countries. In January 2008, Gap entered into a partnership with Marinopoulos Group to expand into Greece, Romania, Bulgaria, Cyprus, and Croatia. In 2009, Elbit Imaging acquired the franchise rights for Israel. The brand debuted its first Australian store in Melbourne in 2010 through franchising. Chile’s inaugural Gap store opened in 2011 via Komax franchise arrangements; that same year saw the launch of stores in Warsaw, Poland—though all Polish outlets closed by 2015. Expansion into India included openings in New Delhi (2015) and Mumbai (2016).

In May 2016, due to weak financial results, Gap withdrew from Japan by shuttering all Old Navy stores there. The company also exited Israel by closing seven stores in 2017 and left Australia in 2018 following Oroton Group's termination of its franchise agreement.

By May 2021, Gap operated company-owned stores across multiple countries including the United States, Canada, Mexico, the United Kingdom, France, India, Italy, the Czech Republic, Ireland, Japan, the Philippines, China, and Taiwan.

In June 2021, Gap revealed plans to close all 81 stores across the UK and Ireland by September to shift exclusively to an online retail model. Simultaneously, negotiations were underway to transfer ownership of French and Italian stores to local partners. By September 2021, Gap established a joint venture with British retailer Next plc to oversee its UK e-commerce platform and run concessions within Next’s physical stores—thus maintaining its presence in the UK market despite closing standalone shops. In November 2022, Baozun agreed to purchase Gap’s China division and continue operating stores across China and Taiwan under franchise agreements.

Product Red

In 2006, Gap became a participant in the Product Red initiative by introducing a distinctive RED line, featuring T-shirts crafted from cotton sourced in Lesotho, Africa. This expanded range was launched on October 13, 2006, with between 50% and 100% of the proceeds directed to the Global Fund. The campaign extended into 2007, showcasing products branded with phrases such as "Admi(RED)" and "Desi(RED)". Although Gap faced criticism from labor rights advocates due to previous sweatshop controversies, the Product Red effort has successfully contributed over $45 million to the Global Fund, establishing it as the largest private contributor. Other original collaborators included American Express, Apple Inc., Converse, Hallmark, Emporio Armani, and Motorola.

Controversies

In 1999, allegations emerged regarding sweatshop conditions at Saipan factories supplying Gap, involving unpaid overtime, forced abortions, and hazardous work environments. A class-action lawsuit filed in 2003 against Gap and other companies culminated in a $20 million settlement.

In 2006, inquiries uncovered severe labor abuses at the Western Factory in Irbid, Jordan, where workers endured up to 109 unpaid hours weekly; there were also reports of sexual misconduct by supervisors. The Jordanian authorities intervened, and by May 2018 Gap had severed ties with this supplier.

BBC investigations in 2007 revealed child labor practices within Indian factories producing for Gap. The company denied prior awareness of these conditions and promptly withdrew the affected merchandise while committing to strengthen ethical oversight.

In February 2014, then-CEO Glenn Murphy declared an increase in minimum wages for Gap’s 65,000 employees across U.S. stores as part of a comprehensive plan to enhance labor standards.

In 2020, the Australian Strategic Policy Institute identified Gap among 82 prominent brands linked to forced labor involving Uyghurs in Xinjiang.

Additionally in 2020, Gap entered a decade-long collaboration with rapper Kanye West; however, West terminated the partnership in September 2022 citing unmet contractual obligations.

Carbon footprint

For the year ending December 31, 2020, Gap reported combined CO2e emissions (both Direct and Indirect) totaling 241 kilotonnes—a year-over-year decrease of 33.8%. The company has committed to reducing its overall emissions by 90% by 2030 compared to its 2017 levels, aligning its science-based targets with the goals of the Paris Agreement aimed at limiting global temperature rise to 1.5 °C.

Gap's annual Total CO2e Emissions - Market-Based Scope 1 + Scope 2 (kilotonnes)
Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
448 406 388 364 241

Leadership

The current executive team includes:

  • Richard Dickson – Chief Executive Officer
  • Katrina O'Connell – Chief Financial Officer
  • Mark Breitbard – President & CEO of Gap
  • Chris Blakeslee – President & CEO of Athleta
  • Haio Barbeito – Brand President & CEO of Old Navy
  • Vacant – Brand President & CEO of Banana Republic
  • Eric Chan – Chief Business & Strategy Officer
  • Amy Thompson – Chief People Officer
  • Julie Gruber – Chief Legal & Compliance Officer and Corporate Secretary
  • Zac Posen – Creative Director for Gap Inc. and Chief Creative Officer for Old Navy
  • Sally Gilligan – Chief Supply Chain & Transformation Officer
  • Sven Gerjets – Chief Digital & Technology Officer

Board of directors

As of June 2024, the board is composed of the following members:

Stores

By the third quarter of 2018, Gap Inc. managed or franchised a total of 3,688 stores spanning 43 countries, with delivery services extending to 90 countries. Locations in Brazil, Canada, China, France, Italy, Ireland, Japan, Mexico, the United Kingdom, and the United States (including Puerto Rico) are owned directly by the company; stores elsewhere operate under franchise agreements.

Following earlier closures in the U.S. between 2011 and 2013, the company initiated a global store reduction beginning in 2020 as part of a broader strategic overhaul. The table below presents store numbers up to February 2024.[1]

Annual Store Totals for Gap Inc. by Brand[1]
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Gap North America 1396 1335 1293 1249 1193 1152 1111 1043 990 968 960 866 844 810 758 675 556 520 493 472
Gap Asia 78 91 105 110 113 120 135 152 191 228 266 305 311 313 332 358 340 329 232 134
Gap Europe 169 165 168 173 173 178 184 193 198 193 189 175 164 155 152 137 117 11
Old Navy North America 889 959 1012 1059 1067 1039 1027 1016 1010 1004 1013 1030 1043 1066 1139 1207 1220 1252 1238 1243
Old Navy Asia
Banana Republic North America 462 494 521 555 573 576 576 581 590 596
Athleta North America
Franchise
Total '2994' '3048' '3112' '3167' '3149' '3095' '3246' '3263' '3407' '3539' '3709' '3721' '3659' '3594' '3666' '3919' '3715' '3399' '3352' '3560'


See also

External links

  1. ↑ 1.0 1.1 Cite error: Invalid <ref> tag; no text was provided for refs named :0
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