Mobile POS Integration at Gap

Following the "intrapreneurship" post we have a little story of Gap, Inc. trying this approach.

http://www.mobilecommercedaily.com/gap-sees-growth-from-mobile-point-of-sale-integration

Here is a snippet from the piece:

With the introduction of a mobile point-of-sale system in 20 percent of its stores, Gap believes that this expansion will bring higher mobile engagement and sales.

In its Q4 earnings report, Gap reported an increase in mobile integration among its stores and recommitted itself to investing fully in its mobile offerings.

Happy Reading,

J.W. Gant

Gap Attempting to be Cool Again

I certainly recall when Gap was everywhere, but that seems like a long time ago.

Business Insider has a good story on Gap's plans to become cool (and relevant?) again.  Excellent read on business in general and how supply chain assists with "cool" in today's world.

http://www.businessinsider.com/gaps-plan-to-be-cool-again-2015-8

Here is a snippet from the piece:

Gap was once so cool that Sharon Stone wore one of its turtlenecks to the Oscars.

But as consumers turned to cheaper fast-fashion alternatives, Gap failed to catch up. In the age of Instagram and instant fashion, the retailer's designs feel dated.

Now, America's largest apparel retailer is embarking on a turnaround plan to recapture cool customers by reinventing its supply chain to compete with brands like H&M, Zara, and Forever 21. It's also overhauled marketing and made key hires.

Happy Reading,

J.W. Gant

Digital Retail Strategy

The world is changing so rapidly we can often find ourselves lost.  However, as with most things when we look closely we find that what was old is new again.  If we take a moment to evaluate where we have been, where we are now, and what we can see coming we can begin to plan for the future with some sense of certainty.

That is the purpose of the new white paper I've recently finished.

Here is the title:

Digital Retail Strategy

And the Impact of Phase IV Product Marketing

The Story of Mass Marketing in America Continues

Here is a link to the full 50 page white paper, with roughly 2.5 pages of executive summary followed by a few dozen pages of appendices:

Digital Retail Strategy White Paper

Here is the opening paragraph:

     The modern era of the mobile internet combined with an explosion of social media has created a new paradigm for retailers and manufacturer brands in the United States that present risks and opportunities for both. Manufacturer brands are now rushing to embrace the opportunities presented in the new era and retailers must respond or risk disruption and irrelevance. The 1990s launched the Information Age and a new form of product marketing. This was named the 4th phase of product marketing by Richard S. Tedlow of Harvard Business School. At the time of the 1996 update to his book ‘The Story of Mass Marketing in America’ the strategic characteristics and implications of the 4th phase were unclear, while the defining infrastructure was determined to revolve around the information revolution. In 2015 we can see the call to action that is the new phase of product marketing and it is loud and clear: digital and mobile is king, customers have much more power, and both retailers and brand manufacturers are faced with new risks and new opportunities.

I hope you enjoy the read. This was a fun one to research.  It took me to many places I was uncertain of when the journey began.

Happy Reading,

J.W. Gant

More on Gap, Inc.

At some point it could begin to feel like piling on, but I guess writers have to write and editors have to get stories published before deadline.  Still, these are good reads.

The New York Times has a bit on Gap's fashion and the impact of social media:

http://www.nytimes.com/2015/06/21/business/gaps-fashion-backward-moment/

Here is a bit from the NYT piece:

At 8:50 on a Wednesday morning, nearly two dozen shoppers hovered in front of H&M’s new global flagship store on the corner of West 34th Street and Avenue of the Americas in Manhattan, eager to get inside as soon as the doors were unlocked at 9.

Directly across the street, a Gap store was also preparing to open. A lone woman stood in front. She was handing out fliers for a Cuban restaurant as pedestrians hurried by.

The contrast summed up the state of American retailing. One by one, iconic brands like Gap, J. Crew, American Apparel and Abercrombie & Fitch have reported slumping sales, while chic and cheap foreign fast-fashion brands like H&M, Uniqlo and Zara are opening bustling stores and luring away customers once devoted to a more basic American style.

Happy Reading,

J.W. Gant

Gap Announces Strategy for the Future

Gap, Inc. is in the news at  its annual investors meetings for Wall Street analysts.

https://www.internetretailer.com/2015/06/17/gap-ties-its-future-more-digital-mobile-and-global-expansion

Here is a snippet from that piece:

Despite a rocky first quarter and a round of cost cuts, Gap will continue to grow e-commerce and its global operation, CEO Art Peck told analysts at Gap’s annual investor day meeting.

The future for Gap Inc. is digital and global. At least that’s the latest vision from Gap CEO Art Peck and senior managers to Wall Street analysts at the company’s annual investor’s meeting Tuesday in San Francisco.

There is also a conversation with CEO Art Peck over on Loyalty360:

http://loyalty360.org/resources/article/gaps-goal-of-brand-loyalty/

Here is a snippet from that piece:

“I want to underline that word consistency,” Peck said during the company’s 2015 Investor Meeting Conference on Tuesday, according to Seeking Alpha. “It’s a critical issue for us and it’s been our Achilles heel as an organization. And we are heads down across all of our businesses focusing on improving the consistency of our performance, day-after-day, week-after-week, season-after-season. Gap is a great brand, a relevant brand, a power house brand around the world, and it deserves its rightful place inside this portfolio and for our customers, and we are working very hard to it back to where it needs to be.” 

Working together as a team is crucial to any future success, Peck said.

This is the news I've been waiting for from Gap, and expect to see from other retailers.  Move to embrace digital or die slowly.  Sears is banking the future of the company on it, though things have gotten so bad it may be difficult to stop the bleeding.  Many others have led from the front or are trying to catch up quickly.  Soon there will only be laggards, likely to include regional chains and supermarkets.

Happy Reading,

J.W. Gant

**UPDATE** Good addition to the above stories over on Bloomberg.com:
http://www.bloomberg.com/news/articles/2015-06-18/gap-studies-old-navy-s-blockbuster-pixie-pants-to-spur-comeback

Here is a snippet from that piece:

The design team at Old Navy identified pixies -- slim, cropped women’s pants -- as a potentially hot trend for spring last year. In quick succession, Old Navy’s sourcing team and suppliers developed a versatile, cost-effective fabric, tested the pants in stores, then ramped up marketing and production. The product has been a runaway success, selling briskly and winning glowing reviews online.

That speed in turning ideas into sales has helped Old Navy become Gap Inc.’s star performer and shows how the company’s namesake brand and upscale Banana Republic chain should operate, Chief Executive Officer Art Peck said. Bargain-focused Old Navy posted U.S. sales last quarter that were almost double those of the Gap brand, which is closing a quarter of its full-price locations in North America after more than a year of declining comparable-store sales.

Gap, Inc. in the News

Not a good day for Gap employees, though this may signal the beginning of a new phase for the company (I believe it does).  Gap is closing a bunch of stores and is trimming the staff at corporate headquarters.

http://www.newsweek.com/gap-plans-shutter-175-stores-cut-jobs-343336

Here is a snippet from that piece:

Gap is planning to close 175 stores in North America. Of those, 140 will close this fiscal year, the company announced Monday evening.

All of those affected will be regular Gap stores, rather than outlets or factory shops. An undisclosed number of European stores are also set to close. This will leave 800 Gap stores in North America, and about 1,600 worldwide.

“Our customers and employees want Gap to win,” Jeff Kirwan, global president for Gap, said in a statement. “We’re focused on offering consistent, on-brand product collections and enhancing the customer experience across all of our channels, including a smaller, more vibrant fleet of stores."

The Washington Post has a good read on Gap and Millenials:

http://www.washingtonpost.com/news/morning-mix/wp/2015/06/16/how-millennial-shoppers-have-made-gaps-basic-look-obsolete/

Here is a snippet from that piece:

During its most successful run, Gap’s fashion catered to children of the 1980s and ’90s — first with plain T-shirts and blue jeans, then with button-downs and clean-cut khakis. Artists and musicians helped popularize the androgynous look, one that seemed to define Generation X, whose shoppers strove to fit the trend.

It was a snapshot of pop-culture. In 1993, it was used as fodder for a “Saturday Night Live” skit “The Gap Girls.” In 1995 and again in 1998, Sharon Stone sported Gap shirts on the red carpet.

But the idea that once made Gap so popular has become obsolete.

I was part of that generation that saw all things Gap as a good thing.

Back to the overarching story here.  We've seen a slew of retailers make moves that look like what Gap is starting here.  Trim middle-management staff, trim under-performing stores, all of which provides annualized cash, and invest in digital to craft a new customer experience.  Staples in 2013, Macy's, Target, and more and more and more.  Best Buy is opening an innovation lab in Seattle, Walmart has one outside San Francisco, and even Wendy's just announced the same.  Digital is the pathway for brick & mobile.  Get on it, or die slowly.

Happy Reading,

J.W. Gant


**UPDATE** Excellent addition to the above links can be found here:

http://www.buzzfeed.com/sapna/gaps-store-closures-highlight-fate-of-americas-worst-malls

Here is a snippet from that piece:

While Gap hasn’t specified where it will close stores, the announcement underscores the fact that America’s malls have become increasingly bifurcated in the past decade.

At the highest end, retailers fight for space in what analysts refer to as “A” malls, which are home to brands like Apple and Tiffany & Co. and lure educated, wealthy shoppers. Lower down the list, “C” and “D” malls (where D means “dead”) are suffering from declining foot traffic, sputtering sales, and the exit of national retailers.

Gap Making Moves in Mobile

Gap, the San Francisco based retailer, is starting to do interesting things in mobile and looking to engage with customers more effectively.

Spring is a retail app that operates as a virtual mall, creating a collection of relevant brands based off of the user’s interests, and which is growing in popularity with millennials.

Here is the full story:

http://www.mobilecommercedaily.com/gap-attempts-to-revive-image-with-millennials-via-spring-app

Here is a larger snippet from that piece:

“With over $200 billion in mCommerce sales last year and a predicted $600 billion in the year 2018, partnering with a mobile app like Spring could play a crucial role in driving sales for Gap through their mobile channel,” said Melissa Greenberg, general manager at Fetch, New York. “Mobile app features like push notifications, loyalty rewards and social referrals can act as tools to help engage users and promote products and push users to make purchases directly on the app.

Happy Reading,

J.W. Gant

Gap in the News

I follow a few retailers with interest especially including Macy's.  However, the moves being made by Gap seem right to me and I'm inclined to watch them.  They are in the news today and have an excellent write-up on them that is worth your time.

First up is the announcement of a new chief of "Customer Experience":

http://www.chainstoreage.com/article/gap-names-%E2%80%98customer-experience%E2%80%99-chief-eliminates-creative-director-post

Here is a snippet from that piece:

Incoming Gap Inc. CEO Art Peck is wasting no time reshaping the apparel giant. In its latest management shakeup, the retailer named company veteran Scott Key to the new position of senior VP and general manager of customer experience for its namesake brand. It also announced that Rebekka Bay, creative director for the Gap brand, was departing the company, effective immediately.

The latest changes come on the heels of Gap’s announcement last week that it was shutting down its Piperlime brand.

I've found Scott to be a sharp, talented and engaging individual so I wish him well with this new responsibility.  Gap is in good hands here.

Next up is this analysis of Gap's issues:

http://www.retail-week.com/sectors/fashion/analysis-how-gap-failed-to-fill-a-gap-in-the-fashion-market/5071599.article?blocktitle=Latest-news-&-analysis&contentID=15016

Here is a snippet from that piece:

Gap has axed its creative director Rebekka Bay, pulled the plug on its Piperlime brand,seen sales slip and appears to be perpetually on Sale.

Remember when Gap was insanely popular? Teenagers proudly wore the brand’s logo emblazoned across their T-shirts, jumpers and caps, and those in their 20s and 30s bought into the brand’s basics range. That was in the 1990s and early noughties; the preppy US brand has failed to return to its heyday ever since.

That last one also speaks to the news of the cancellation of their Piperlime brand.

Happy Reading,

J.W. Gant

Gap, Kohl's and eBay in the News

That little show by the NRF is helping get some news out, and elsewhere as well.

First up is eBay with a really interesting omnichannel assistant offering:

http://www.wwd.com/media-news/digital/save-that-sale-ebay-unveils-platform-8105937

Very cool platform, and worth reading up on.

Next is Gap ramping up its mobile:

http://www.mobilecommercedaily.com/gap-taps-mobile-to-mimic-flagship-store-experience-for-customers

Here is a snippet from that piece:

“We’ve just scratched the surface of what mobile can do for retail. Mobility is a big part of change in customer experience in stores.”

Finally is news from Kohl's on its mobile efforts:

http://www.mobilemarketer.com/cms/news/software-technology/19530.html

Here is a snippet from that piece:

“Not moving fast is far riskier than trying things out and failing in some and succeeding in others,” Mr. Lavu said. “Previously, we used to do a lot of big bang innovations.

“Test, learn, iterate again, and then continue to change.”

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0107 Gap and Omni-channel

Gap Inc., has made public to their investors some of the effects and ongoing work they've been doing in fulfilling their concept of multiple channels of operation (omni-channel).  Chain Store Age has a write-up on it here:

http://chainstoreage.com/article/gap-details-omni-channel-strategy-global-growth?ad=technology

Here is a snippet from that piece:

Gap Inc. highlighted its use of technology and innovation to bridge the growing digital world with its physical stores at the company’s annual meeting with investors. In new initiatives, the retailer is expanding its reserve in-store service to all U.S. Gap stores by the end of the second quarter, enabling online and mobile shoppers to now reserve items at more than 1,000 Gap and Banana Republic store locations.

The connected world is a different place and the mobile internet is changing fundamental processes.  Gap is one of the leaders in this space, innovating and 'failing fast' to ensure they don't fall behind.  What can other retailers learn from their example?

Retail Information Systems has a good write-up that coincides with this thinking though you'll have to register to download the report.

http://risnews.edgl.com/reports

Here is one snippet from that I found interesting:

One final point and a big one: the best-of-breed approach to software, long the dominant architecture approach, is in a state of flux. It is not going away any time soon, and, in fact, it is not being supplanted by any alternative, such as integrated solutions suites or software as a service. (See Figure 4.)

However, evidence indicates it may no longer remain the dominant force it has been for the last two decades. This year, 38.1% of retailers chose best-of-breed software to describe their architectural approach to software, a nearly 20-point drop from last year’s 57%. Conversely, using in-house IT resources to develop software jumped to 44.1% and first place on the list, which is up from 31% and last place in 2013.

Why the dramatic year-over-year swings? Call it the innovation effect. If you can buy a best-of-breed solution off the shelf, so can all of your competitors.

Happy Reading,

J.W. Gant

**UPDATE**  Another story on Gap Inc., and their digital efforts:
http://www.mobilecommercedaily.com/gap-prioritizes-responsive-web-as-part-of-300m-digital-investment

Good read.