2 January 2013

GAP

The Gap, Inc.,[3] commonly known as Gap Inc. or Gap, is an American multinational clothing and accessories retailer. It was founded in 1969 by Donald G. Fisher and Doris F. Fisher and is currently headquartered in San Francisco, California. The company operates five primary divisions: the namesake banner, Banana Republic, Old Navy, Piperlime, and Athleta. Gap Inc. was surpassed by Spanish-based Inditex Group as the world's largest apparel retailer,[4] though it remains the largest specialty retailer in the United States. As of September 2008, the company has approximately 135,000 employees and operates 3,076 stores worldwide, of which 2,551 are located in the U.S.[5]

The Fisher family remains deeply involved in the company, collectively owning much of its stock.[6] Donald Fisher served as Chairman of the Board until 2004, playing a role in the ouster of then-CEO Millard Drexler in 2002, and remained on the board until his death on September 27, 2009. Fisher's wife and their son, Robert J. Fisher, also serve on Gap's board of directors. Robert succeeded his father as chairman in 2004 and also served as CEO on an interim basis following the resignation of Paul Pressler in 2007, before being succeeded permanently by Glenn K. Murphy.
Contents

    1 History
    2 Corporate identity
        2.1 Logo
        2.2 Brands
        2.3 Marketing
    3 Corporate affairs
        3.1 International presence
        3.2 Labor practices
        3.3 Product Red
    4 Management
        4.1 Leadership
        4.2 Board of directors
    5 Stores
    6 References
    7 External links

History

Donald and Doris Fisher opened the first Gap store on Ocean Avenue in San Francisco on August 21, 1969; its merchandise consisted of Levi's and LP records. They had raised $63,000 to open the store,[1] and reached $2 million in sales in the first year of operation. In 1970, Gap opened its second store in San Jose, California and established its corporate headquarters in Burlingame, California with four employees. By 1973, the company had over 25 locations and had expanded into the East Coast market with a store in the Echelon Mall in Voorhees, New Jersey. In 1974, Gap began to sell private-label merchandise.

In the 1990s, Gap assumed an upscale identity and revamped its inventory under the direction of Millard Drexler.[citation needed] However, Drexler was removed from his position in 2002 after over-expansion, a 29-month slump in sales, and tensions with the Fisher family. Drexler refused to sign a non-compete agreement and eventually became CEO of J. Crew. One month after his departure, merchandise that he had ordered was responsible for a strong rebound in sales.[7][8][9] Robert J. Fisher recruited Paul Pressler as the new CEO; he was credited with closing under-performing locations and paying off debt. However, his focus groups failed to recover the company's leadership in its market.

In 2007, Gap announced that it would "focus [its] efforts on recruiting a chief executive officer who has deep retailing and merchandising experience ideally in apparel, understands the creative process and can effectively execute strategies in large, complex environments while maintaining strong financial discipline." That January, Pressler resigned after two disappointing holiday sales seasons and was succeeded by Robert J. Fisher on an interim basis.[10][11][12] He began working with the company in 1980 and joined the board in 1990, and would later assume several senior executive positions, including president of Banana Republic and the Gap units.[13] The board's search committee was led by Adrian Bellamy, chairman of The Body Shop International and included founder Donald Fisher. On February 2, Marka Hansen, the former head of the Banana Republic division, replaced Cynthia Harriss as the leader of the Gap division. The executive president for marketing and merchandising Jack Calhoun became interim president of Banana Republic.[14] In May, Old Navy laid off approximately 300 managers in lower volume locations to help streamline costs. That July, Glenn Murphy, previously CEO of Shoppers Drug Mart in Canada, was announced as the new CEO of Gap, Inc. New lead designers were also brought on board to help define a fashionable image, including Patrick Robinson for Gap Adult, Simon Kneen for Banana Republic, and Todd Oldham for Old Navy. Robinson was hired as chief designer in 2007, but was dismissed in May 2011 after sales failed to increase. However, he enjoyed commercial success in international markets.[15][16][17]

In October 2011, Gap Inc. announced plans to close 189 US stores, nearly 21 percent, by the end of 2013; however, it also plans to expand its presence in China.[18][19] The company announced it would open its first stores in Brazil in the Fall of 2013.[20]
Corporate identity
Logo
Original The Gap service mark, filed February 29, 1972
Gap's original logo, in use from 1969 until 1986.

Gap Inc. owns a trademark to its name, "Gap", though it is also a common English word with multiple definitions.
Gap's short-lived third logo, in use for one week in 2010.

The Gap's original trademark was a service mark for retail clothing store services. The application was filed with the United States Patent and Trademark Office on February 29, 1972 by The Gap Stores; registration was granted on October 10, 1972. The first use of the trademark was on August 23, 1969, and expanded to commercial usage on October 17, 1969. A second application was filed by Gap Stores, Inc. on September 12, 1974, this time for a trademark filed for Shirts. The first usage for shirts and clothing products was on June 25, 1974. Trademark registration was granted on December 28, 1976. Both the service mark and trademark are registered and owned by Gap (Apparel), LLC of San Francisco, California.

On October 6, 2010, in an effort to establish a contemporary presence, Gap introduced a new logo. It was designed with the Helvetica font and reduced the prominence of the brand's iconic blue box. After much public outcry, the company reverted to its previous "blue box" logo on October 12, after less than a week in use.[21][22] Marka Hansen, the executive who oversaw the logo change, resigned February 1, 2011.[23]
Brands

Banana Republic, a small safari-themed clothing retailer, was purchased by Gap in 1983 and was rebranded as an upscale clothing retailer in the late 1980s. Old Navy was launched in 1994 as a value chain with a specialty flair. Forth & Towne, the company's fourth traditional retail concept, was launched on August 24, 2005, featuring apparel targeted toward women 35 years and older.[24] On February 26, 2007, after an 18-month trial period, it was discontinued, and the 19 stores were closed.[25] A fifth brand, the online clothing and accessories retailer Piperlime, was created in 2006.[26] A sixth brand, Athleta, a women's athletic wear line, was added in 2009.[27]

Gap's Sales by Division in Q1 2009[28]
Divisions     Total revenue
Gap North America     $834 million
Banana Republic North America     $475 million
Old Navy North America     $1.18 billion
International     $369 million
Gap Inc Direct     $267 million
Marketing
A Gap location in Westfield Valley Fair, San Jose, CA.

The Gap originally targeted the younger generation when it opened, with its name referring to the generation gap of the time.[29]). It originally sold signature blue jeans and white cotton t-shirts, and later expanded to include clothing for men, women and children.[30] Gap's current market works to appeal to a broad demographic of customers, whereas Banana Republic presents a sophisticated image and Old Navy focuses "fun, fashion, and value" for families and younger customers. While the company has been criticized for blandness and uniformity in its selling environments, it maintains that it tailors its stores "to appeal to unique markets" by developing multiple formats and designs.[31] The domain www.gap.com attracts over 18 million visitors annually, according to a 2008 Compete.com survey.[32]
Corporate affairs
International presence

Gap operates stores in the United States, Canada, the United Kingdom, France, Ireland, Korea, Japan and China; it also has franchise agreements with unaffiliated franchisees to operate Gap or Banana Republic stores in Philippines, Singapore, Malaysia, United Arab Emirates, Korea, Kuwait, Qatar, Bahrain, Oman, Saudi Arabia, Cambodia, Indonesia and Mexico.[33] As of February 3, 2007, Gap Inc. operates 3,131 locations.[34] In January 2008, Gap signed a deal with Marinopoulos Group to open Gap and Banana Republic stores in Greece, Romania, Bulgaria, Cyprus and Croatia.[35] In February 2009, Elbit Imaging, Ltd. secured a franchise to open and operate Gap and Banana Republic stores in Israel.[36] In August 2010, the company opened its first store in Melbourne, Australia at Chadstone Shopping Centre.[citation needed] In September 2011, Komax opened the first Gap store in Chile, due to a franchise.[37] In October 2011, the first GAP store opened in Warsaw, Poland.[38]
Labor practices

In 2003, Gap and 21 other companies were involved in a class action lawsuit filed by sweatshop workers in Saipan. Workers were alleged to not have been paid for overtime work, in addition to unsafe working conditions and forced abortion policies.[39] A settlement of 20 million dollars was reached whereby The Gap did not admit liability.[40]

In 2007, Ethisphere Magazine chose Gap from among thousands of companies evaluated as one of 100 "World’s Most Ethical Companies."[41] The company was ranked 25th by CRO Magazine in its “100 Best Corporate Citizens” list in 2007.[citation needed] In May 2006, adult and child employees of Western, a supplier in Jordan, were found to have worked up to 109 hours per week and to have gone six months without being paid. Some employees claimed they had been raped by managers.[42] Most of these allegations were directed at Wal-Mart (who mostly ignored the claims), while Gap immediately looked into the matter to remedy the situation.[42]

On October 28, 2007, BBC footage showed child labor in Indian Gap factories.[43] The company denied knowledge of the happenings; it subsequently removed and destroyed the single piece of clothing in question, a smock blouse, from a British store. Gap promised to investigate breaches in its ethical policy.[44]
Product Red
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In 2006, Gap took part in the Product Red campaign with the launch of a special RED collection, including a T-shirt manufactured in Lesotho from African cotton. The expanded Gap Product Red collection was released on October 13, 2006. 50 to 100 percent of the profits went to the Global Fund, depending on the item. The company continued the products into 2007, especially in the lead up to Valentine's Day, using slogans such as "Admi(RED)" and "Desi(RED)." Product Red has contributed over $45 million to the Global Fund, more than any other private donation received to date. Other launch partners included American Express, Apple Inc., Converse, Hallmark, Emporio Armani and Motorola.
Management
Leadership

The current leadership is:[45]

    Chairman of the Board of Directors:
    Chief Executive Officer: Glenn K. Murphy[46]

    President, Banana Republic Brand: Jack Calhoun
    President, Japan: John Ermatinger
    President, Gap Brand: Art Peck
    President, Gap, Inc. Direct: Toby Lenk
    President, Europe: Stephen Sunnucks
    President, Gap, Inc. Outlet Art Peck

    Executive Vice President, Corporate Strategy and Business Development: Art Peck
    Executive Vice President and Chief Financial Officer: Sabrina Simmons
    Executive Vice President and Chief Information Officer Tom Keiser
    Executive Vice President, Human Resources and Corporate Communications: Eva Sage-Gavin
    Senior Vice President, Gap International Sourcing: Stan Raggio
    Senior Vice President & General Counsel: Michelle Banks

Board of directors
Gap headquarters in San Francisco, California.

    Howard P. Behar
    sAdrian D. P. Bellamy (1995)
    Domenico De Sole
    Doris F. Fisher (1969)
    Robert J. Fisher (1990), Chairman (2004)
    Penelope L. Hughes
    Bob L. Martin
    Jorge P. Montoya
    James M. Schneider
    Mayo A. Shattuck III
    Ken Pickart

Stores
A branch on Briggate in Leeds, West Yorkshire.

As of February 2, 2013, Gap Inc. had 3,064 company-owned store locations,. The company expected to open about 200 store locations and to close about 125 store locations in 2011.[1][47] Stores in Canada, China, France, Italy, Ireland, Japan, UK, and US (including Puerto Rico) are company-owned; those outside of these countries are owned and operated by franchises.

Gap

     Australia 3
     Azerbaijan 1
     Bahrain 2
     Bulgaria 1
     Canada 101[47]
     Chile 47[48]
     Colombia 5 [49]
     Croatia 1[50]
     Cyprus 1
     Egypt 3[51]
     El Salvador 1[52]
     France 37[47]
     Georgia 1 opened July 2012
     Greece 4
     Hong Kong 3
     India 40
     Indonesia 3
     Ireland 3[47]
     Israel 5
     Italy 10
     Japan 144[47]
     Jordan 1[53]
     Kazakhstan 2
     Kuwait 2
     Malaysia 10
     Mexico 4 [54][55]
     Morocco 1[51]
     Oman 1
     Panama 3
     Pakistan 1
     Poland 3
     People's Republic of China 5
     Philippines 9
     Puerto Rico 6

     Qatar 1
     Romania 2
     Russia 11
     Saudi Arabia 19
     Singapore 4
     Serbia 1

     South Africa 2
     South Korea 6
     Thailand 8
     Turkey 21[56]
     Ukraine 3
     United Arab Emirates 14[57]
     United Kingdom 148[47]
     United States 889[47]

   

Banana Republic

     Canada 50[47]
     Chile 1[58]
     Croatia 1[50]
     El Salvador 1[52]
     France 1
     Colombia 1 [59]
     Georgia 1 opened July 2012
     India 3
     Indonesia 3
     Italy 1
     Japan 28[47]
     Kuwait 1
     Malaysia 2
     Morocco 1[51]
     Panama 2
     Philippines 4
     Puerto Rico 4
     Qatar 1
     Saudi Arabia 2
     Singapore 1

     South Korea 5
     Turkey 4[60]
     United Arab Emirates 2
     United Kingdom 8 [61]
     United States 540[47]

   

Old Navy

     Canada 65[47]
     Japan 1
     Puerto Rico 7
     United States 945[47]

   

Athleta

     United States 35 [47]

   

Piperlime

     United States 1 [47]

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