Summary: OVERPRICED
Score: 5/20
MOS: -3,501%
Share Price: $11.75
Sticker Price: $.33
GAP has made a few mistakes over the years. Based on an article from Business Insider from 2019, here are a few…
1. 50% OFF is over marketed. If you constantly place something at 50% OFF, customers think 50% OFF is the “new normal price.” It’s wise to offer discounts but you have to create a time limit such as “50% OFF ends in the next 3 days”. The more effective strategy within retail is to keep prices marked down by 10% – 15% and then every so often, mark them down to 50% OFF.
2. The styles have remained stale for the last two decades. There is nothing innovative or trendy that sets GAP apart.
3. GAP has focused a lot of attention on in-store sales as opposed to ecommerce like Lululemon. Creating an easy to use ecommerce platform driven by social media and affiliate brands is a tactic GAP should have applied before 2010. Now they’re behind the trend and struggling to gain traction.