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The Gap Essay, Research Paper

The Gap Inc.

When I foremost thought bout what company I would wish to research, I look down and

fixed the neckband on my shirt. Then it dawned on me that since I love manner, I could make

it on the spread. Who had the power ( and the apparels ) to do the NYSE take its first insouciant

Friday? The Gap & # 8212 ; the omnipresent vesture retail merchant that runs over 3,300 shops, largely in

the US, but besides in Canada, France, Germany, Japan, and the UK. Its flagship Gap shops

offer a broad assortment of work forces & # 8217 ; s and adult females & # 8217 ; s insouciant vesture ( T-shirts, denims, khakis ) . The

company & # 8217 ; s other ironss include Banana Republic, GapKids, babyGap, and its fastest

turning, Old Navy. Each concatenation besides has an on-line embodiment. The Gap is adding

GapBody intimate dress shops and eating houses in flagship Old Navy shops. All Gap

vesture is private-label ware made specifically for the company. The initiation

Fisher household owns about 34 % of the company.

Sing that Gap is a interior decorator trade name, its rivals would besides be designer names

in manner. Some rivals are American Eagle, Spiegel, and Abercrombie and Fitch.

The article, ? Gap Mishap & # 8211 ; But Still Deserves a Expression, ? by Lee Clifford, states that the

Gap and its subordinates make up some 5 % of all the apparels bought in the Unite

vitamin D States

and it goes on to state that finally that figure will leap to 8 % . For right now,

nevertheless, the Gap is traveling through some tough times. The San-Francisco based company

missed its net incomes projections for both the first and 2nd quarters this twelvemonth and scaled

back outlooks for the remainder of 2000. Shop gross revenues in August fell 14 % , doing the stock

to travel down 52 % to day of the month. Dan Prislin, the CEO, ? These are turning hurting, non ruddy flags. ?

Most all of the harm is coming at the disbursal of Old Navy. It has been labeled,

? job kid, ? by Prislin. Ad runs were botched and sells have been

enduring because of the ware they are seting out.

However, there is some good intelligence coming out of the Gap cantonment. It is poised to

capitalize on the immense business-casual tendency. Old Navy, which is pitching up to make out

to the 25-plus crowd, has incorporated a more sophisticated line of work apparels for work forces

and adult females. The company is remaining on top of the new-store gaps. This twelvemonth entirely it

will hold added up 700 new locations.

The article offers one piece of advice, that the stock is highly inexpensive right now, and

if you are willing to hang in at that place through this small unsmooth topographic point for Gap it will one twenty-four hours the

returns will be great. So don? T give up on the Gap.

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