Tuesday, July 25, 2006

Old Navy/Gap getting desperate

Old Navy's comp store sales are down and Gap's share price is down 24%. Time for desperate measures, according to Forbes.

The problem is that there is a lot of competition for the low-cost fashion niche that Old Navy occupies -- Target, Kohl's, H&M (my daughter's favorite). Apparently, they're going to try upgrading their line. If it doesn't work, it could be the end of the line for some folks:

The stakes couldn't be higher for the company. Or for Paul Pressler, CEO of parent company Gap.

"If this doesn't work, the story is going to end for him," says Richard Jaffe, a retail analyst with Stifel Nicolaus. "That's why we're seeing a big push for fall 06."

The Forbes article also has a link to a slide show on various retailers who have rebuilt their image.

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