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The Rise And Fall of Gap

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In late February 2019, Gap Inc. announced plans to split into two separate publicly traded companies, sending its stock soaring on the hopes the new structure will help sharpen its focus and boost sales. The retailer said it would spin off its most successful brand, Old Navy, into a separate, publicly-traded company. With its inexpensive basics, Old Navy has consistently accounted for more than 40 percent of the company’s total annual sales. Its other brands, Gap and Banana Republic, will join much its smaller brands, Intermix, Athleta, and Hill City, to form an as-yet unnamed company. Gap also plans to buy high-end children’s clothing line Janie and Jack and fold that into the new company. Despite the sharp spike on the announcement, Gap shares, which have a market value of just under $10 billion, are up less than 1 percent since the start of the year, and have fallen 20 percent over the past year. Gap CEO Art Peck, who will remain with the executive of “NewCo,” said both companies should benefit from “a sharpened strategic focus and tailored operating structure.” A Gap spokesperson wasn’t immediately available for comment. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Gap The Rise And Fall of Gap
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Text Comments (855)
Max Gorden (8 hours ago)
*Company Man would like to know your location*
DeShawn 'Dawg' BNBG (12 hours ago)
8:00 "The company hasn't yet released its 2019 earnings..." Hmm, I wonder why?!
Carlos Davis (16 hours ago)
I'd hate to be that guy but did anybody else see I saw? 2:08
Frank Morales (1 day ago)
Figure fitting Ath-Leisure in the age of value ignorant, overweight consumers obsessed with sausage casing (yoga pants) and selphies. Brilliant!
Wayson Wong (4 days ago)
I got bullied for wearing gap
M.A. Arch (7 days ago)
Miguel Leon (8 days ago)
The boost the price on old navy I’m not shopping their any more their clothes are not that of a quality store power stores like Kohl’s and JCP will dominate
Son Quatsch (12 days ago)
@ 2:09 uh mmmm.
Itz Terro (12 days ago)
In Britain it was pretty popular but now has been replaced by casual brands throughout teens
Craving Morehead (12 days ago)
they need KANYE WEST on deck !!!!!
2HootHoot (13 days ago)
I get all my GAP sweaters from the thrift store
Agent 69 (14 days ago)
they should rename themselve to Zip
Franco Barberis (15 days ago)
They keep selling the same stuff. Their men's shirts aren't even fitted like the ones sold at Express. Khakis are too wide. Basically dad clothes.
Malika Brown (15 days ago)
They need to add more color to their clothing. Everything is jean, khaki, white, black, navy, and the occasional red. These stores speak boring when you pass by......
alan bang (16 days ago)
Over price brand fake sell that's why you fell....
Emma Joseph (16 days ago)
well today u hv to moove with the time make clothes more relevant even for older generation no 1 wants to be stuk with d same old boxy insuple boxy materials.& please nooo loggos as big as a bridge.i remember when i bought 100% silk cashmeer & cotton clothes @ reasonable price from Gaap hard to beleive but now i go around d shop & say nope nothing 4 me hr.
iambackwithabang (18 days ago)
"they arent trying to explore the Indian market. " i have been using Levis since i was a lil kid. and im 32 now.but i started using Gap only when my brother went to the US in 2010 and have been using it till now.and my baby is clothed in Baby Gap,Old Navy and i use Banana Republic as well. but frankly all of them were brought by my brother in truck loads for me and later on for my kid from the US. instead,growing up, Levis was always available in India and still continues to have stores even in small towns in India. you can hardly find GAP or Baby Gap or Old Navy or Banana Republic stores even in big malls/clothing department stores in India. maybe in a few high end stores may have it.but thats far and few. but unlike Gap-- Levis,Wrangler,Nike,Adidas & even UCB have a strong presence in metro cities, cities and small town shops(which keep a few pieces just in case a customer needs it) in India. pretending to be a premier brand when ur cloth quality is almost the same(i mean gap and old navy and some banana republic pieces have the same fabrics and designs) and not promoting agressively in an emerging market like India is one of GAP Incs biggest mistakes. btw : I have bought several Baby Gap pieces on Amazon India. but havent ever seen a single GAP store in a tier 2 or tier 3 city near me.
Meg C. (19 days ago)
GAP needs to stop selling sweatshirts and tees with GAP all over them. I don't like having brand names all over my clothes.... I like them to look classy and chic. Also, my city only has an Old Navy store (we don't have a B&M GAP or Athleta....we have a GAP outlet, though) and what's nice is that if I buy online from Old Navy, I can return to my local store OR mail in my return which makes returns hassle free. Since I'm tall, I mostly wear Old Navy as their clothes come in tall sizes and are affordable and don't have OLD NAVY written all over them. They sell Old Navy logo tees and sweatshirts it's not all that they sell.
Bruno Seibert (19 days ago)
lower quality.. less sales.
Cousin Drew (19 days ago)
Rise and fall of Reebok?
Frosticious (19 days ago)
2:08 That man is gifted.
Mo Batista (20 days ago)
guys can u cool it with the background music please
Marcus Aurelius (20 days ago)
GAP has good basics, good for adding basics -- but its fit is not quite right -- the price is a bit much -- much better styling than old navy -- their chinos are excellent
redmotherfive (20 days ago)
Once the stock price is the focus, it’s pretty much all over for the business.
BearMugs (20 days ago)
GAP just lost what they had in the 80's. They need to keep up otherwise they will lose out. They have lost already. I think Old Navy was a big help but not necessarily a good thing because GAP inc was supplying 3 demographics. I believe that was one of their other flaws. Mostly not keeping up with fashion trends and sticking to what got them so big but also Banana Republic and Old Navy were holding them down. Old Navy was carrying 2 companies on it's back. But it's sort of a cycle of buying a small company that does well for a bit before the fashion changes. That's what happened to GAP and in a few years Athleta and Hill City.
Sergio Díaz Nila (20 days ago)
how the decentralized market evolves into oligopolies (centralized markets) even when new options appear, they are absorbed by the big ones before they become a threat.
namirah rasul (20 days ago)
This is karma for not providing living wages n safety to the workers in the factories in 3rd world countries from where they export. Shame on them for being the cause of many ppl's deaths every year
ORoxy 5575 (21 days ago)
OmG! Target is way better than Gap!!! Same pants, better styles. Even my billionaire boss shops for everything at Target, JCrew, and Banana R! Gap close down, please!
nerdypinkglasses (21 days ago)
I only shop at old navy bc i can actually afford their clothes. They have great sales and stylish options. I shop at the thrift stores for Gap.
Enema Magic (21 days ago)
My first job was Old Navy in 1999. LOL
Gene Louie (21 days ago)
One can better quality clothing at thrift stores for better prices. Just saying.
Stranded NYer (21 days ago)
Lots of "blah blah blah" to say "The Gap is no longer popular because tastes changed."
Fred Flintstone (21 days ago)
Junk, junk, junk. Why do people buy this junk?
David Thompson (22 days ago)
Ugh, the narrator sounds like a bot. Why can't people read with a little modulation in their voice
Velo1010 (22 days ago)
Overpriced products from third world countries. I was a fan of The Gap and Banana for a long time. Then I noticed the price creep.
Daddying (22 days ago)
Baby gap was so much better before, as soon as our kids got over the age, we never went yo GAP, didn't appe to us as baby gap, GAP clothes are a walking ad, why would I wear they logo huge on me, and don't put it on my kids. Plus the prices are not low either.
serialkilla23 (22 days ago)
Keep making same stuff n never changing ...dinosaurs business model..
cbunk47 (23 days ago)
"be better than the gap"- ryan gosling
Vanessa Raab (23 days ago)
Honestly yes gap is basic, but you can literally wear it 10 years from now. I have some gap jeans that I bought 10 years ago and they still look modern and the T-shirt’s as well. I mean basic clothes are an essential for a long time.
Birdie R (23 days ago)
The quality is not equivalent to the price...it used to be pretty high quality, but now the clothes feel like they are from Walmart...not even Target, but Walmart. I still have clothes I bought 10-15 years ago from the Gap and they are still in good shape. Nothing I could buy there now could last that long anymore!
nana (23 days ago)
nobody wants to be a walking billboard anymore! it’s almost like our generation shuns defining ourselves by boring mainstream brands. gap’s days as the cool kid’s brand are over, and their clothes are super overpriced. i only ever pop in there black friday, and even that’s a stretch sometimes
elmaestroco (23 days ago)
"Be better than the Gap"... J.P.
savannah silbernagel (24 days ago)
Gap needs to have younger people picking out the clothing to sell. All I see in the stores are pieces that are 3-4 seasons behind trend. That, or clothes that women named Nancy wear to the park on Thursday afternoons. If they are trying to get the millennial attention, they will have to be smarter with what they choose, and how they market it. Madewell is doing particularly well, and they offer the same style of clothing as Gap. The difference? Everything is up to date with trend, even if its just simple basics. If they don't like that, they should market their clothing as 90's inspired, since that is what is cool now.
JoJo Skye (23 days ago)
People who liked the Gap liked it for their classic basics. Their downfall was trying to market trends that change every single year like most other stores do. They tried to make classics trendy and it failed. You can’t improve on a classic. Clothing stores should market to more than just one generation, after all, everyone wears clothes. If they brought back all of their basics and classics (like they originally began) and stopped trying to be trendy, they would flourish again.
Petros Georgiadis (24 days ago)
Everything at the GAP is dated. All their tees are very boxy in fit. Their shirts too baggy, even if it's labeled "slim fit". I do think their knit sweaters during the fall/winter is the only area where they excel.
Wendy French (24 days ago)
I miss the casual 80’s. Great time to be a teen, especially if you refused to wear short-shorts. I wore Bermuda “Jam” shorts (Hawaiian print) and loved them.
Wendy French (24 days ago)
Can someone tell me WHY the men’s clothes are better quality? I’ll buy a men’s sweatshirt at GAP and they always feel more sturdy. Same with flannel shirts. Oops, there goes my secret👍
pricila (24 days ago)
gap has some good clothing styles but its expensive
Aaron Bays (24 days ago)
I remember shopping at the GAP with my mom back in the late 90's, 8th grade, freshman, sophomore, junior years of high school, but only when stuff was on sale. We also shopped at Old Navy and Castner Knott at the Cool Springs Galleria just to sound extra fancy. So fancy lol
Sebastien Sade (24 days ago)
Other than shoes, I haven't shopped in a physical store for clothing in a decade. I think the last time I stepped into a Gap was in the late 90s, and even back then I thought their selection boring and too limited.
ell diavolo (24 days ago)
2:08 what's he's got in his pocket?
Stranded NYer (21 days ago)
Haha...thought I was the only one that saw that.
fanman12 (24 days ago)
As a former employee, I can tell you that it’s bad management who mistreat employees, paying them low wages, being inflexible with schedule leading to a high turn over rate. They spend so much money on training new and new employees, that they should have spent on paying them better and treating them better to keep the good ones.
C C L Granville (24 days ago)
I love their jeans. It fit all body types
Sierra Lamb (24 days ago)
If they stop putting their ugly logo on all the clothes maybe I’ll stop by
Sierra Lamb (24 days ago)
& it’s also funny bc PINK is starting to through this lolllll idk idk 😂💀
Sierra Lamb (24 days ago)
I’m writing this wearing a sweatshirt with PINK front & center. That’s so funny maybe they are just a wack brand lol
Arko Talukder (24 days ago)
Gap labels hasnt any distinctive values anymore plus their constant assumption that ppl will be fooled by the fake discounts made them pay for it.
Dimitrua Jackson (24 days ago)
The quality of Gap went WAY down, but the price went up. Nope.
Erik Emerölduson (24 days ago)
Everyone: Where they shop now and other jokes Me: 2:08, that guy is NOT wearing underpants.
Uzoma Olumba, GRI (24 days ago)
I like banana republic but what do I know...
Uzoma Olumba, GRI (24 days ago)
Good one! You can also find it on their sales rack for that price...shop the sales...
GApeech08 (24 days ago)
I do too, especially when I find a pair of $80 BR dress pants at Goodwill for $7.
Gabe Play (24 days ago)
I shopped there once at 17 🤷🏻‍♂️ 11 year later I don’t even remember what I got
Lipton T , (25 days ago)
honorablecbm (25 days ago)
Gap generated over 16 billion dollars in revenue at the end of 2018. I don't see any fall with a company that has seen growth in equity, assets, net and operating income. Those are good problems to have, the restructuring came late, but is a smart move.
Karine Pierre (25 days ago)
These brands need to move into the 21st century all of there items are basic to say the least
Alessandro Neiva (25 days ago)
2:08 Thats a BULDGE! Daaaaaaamn! 😈
Live Live (25 days ago)
Lesson gap is expensive very expensive !!!!!
Sabina (25 days ago)
GAP supplies their clothes from SWEAT FACTORIES! Watch Kristen Leo video
Diana21692 (25 days ago)
Personally, I think old navy is an old brand for teens. It's something you would wear in the early 00s. And also GAP is much more prestigious, however, the clothing is boring
nelsonta00 (25 days ago)
I used to like Brand Name clothes, but I've always hated the designers putting a giant emblem of the company's logo on the design. Now I just avoid them clothes with big ass "GAP" "OLD NAVY" "AF" logo on them. I want the style to speak for itself; not the giant logo across my chest!!! I get it, its your brand... just put it on a tag slightly noticeable k thx bye.
shopgirl62173 (25 days ago)
I just hope they don’t close down the Gaps in Miami, I get all my jeans from there. Gap jeans fit my body type. Personally I think that Old Navy is extremely low low quality and juvenile looking and their jeans don’t fit me right.
Bryant E. Alberto (26 days ago)
I just saw that dudes print by mistake at 2:07
sparkly yy (26 days ago)
Older ppl shop at gap now ...youths dont ....
sparkly yy (26 days ago)
There clothes are poor quality and expensive. Also the sizes are way too big for me...and I'm not even that skinny
Bla484 (26 days ago)
GAP clothes are kinda ugly
jason Shores (26 days ago)
Hello 2:08-2:11 boy was packing.
Xani (26 days ago)
I used to work for Gap, once upon a time it was so in. Now I look at the brand and wonder what is the point? Basic clothes that are overpriced that you can get cheaper either online or at Walmart.
mrblf652 (26 days ago)
In the 90's and early 2000's I would shop at the Gap all the time. Now I can't remember the last time I was in a Gap store.
Stephen Kersting (26 days ago)
what a strange music choice
Matt McDuffie (26 days ago)
Maybe don't put "gap" on every single sweater and jacket
Amber Bockel (26 days ago)
The female narrator sounds like a computer/flat & monotone , it’s distracting.
Victoria Inahuazo (26 days ago)
_Fine example of closing the GAP_
Galaxy475 (26 days ago)
I am a mom and I was shopping at gap because of the quality but over the years I prefer more modern cuts for my sons clothes. He’s four years old and my favorite brand for him right now is NEXT which matches gaps quality... a UK brand. I also like H&M even though the clothes aren’t as well made they are more modern cuts.
Aleksandra (26 days ago)
Love this series!
Shah Miraz (26 days ago)
Can you guys give my man Company Man credit?
rosy lazaro (26 days ago)
Reminds me of the channel called company man who covers this kind of stuff 🤔
jermed2001 (26 days ago)
Dear CNBC, your channel is amazing! If only NBC could take a page from your book.
Nicole Ann (26 days ago)
I love gap so hope they do something
Birgitte Stough (26 days ago)
Old navy sucks!
Sarah (26 days ago)
The main reason people stopped buying Gap is because it's so unethical
BigBadSpikey (26 days ago)
The Goth Kids doesn't want to wear clothes from Gap.
Elizabeth Mac (27 days ago)
I worked at a GAP store for 8 years... You didn't mention how they sacrificed quality to cut costs. So many time customers complained sweaters weren't 100% wool or cotton, when they cut quality they lost loyal customers who went looking for it somewhere else. Also they literally stock THE EXACT SAME merchandise every year... 8 years of opening shipment, 80 of the new stuff co would be the exact same as the same season the year before... I would literally wear the shirt/blouse I bought 3years before that they would freakin match...
ULTRA KWON (27 days ago)
Gap and Banana Republic make oversized clothes my dad would’ve wore in the 90s. Quality is akin to Target, and stylistically, it’s old fashioned. Walk into their store, and it’s a dowdy color palette of navy blue, black, beige, and gray. I don’t know if they have tenured designers or what, but they’ve been out of the loop for at least the past two decades.
Danish D'Abreau (27 days ago)
H and M put them in their grave
wasilaify (27 days ago)
Gap was successful in the 90s because their quality was great in the 90s. Now their quality doesn't withstand a couple washes.
Lesbian Amazon Sister (27 days ago)
Any other millennials here shocked to hear GAP used to actually be cool, instead of just a grungy, dingy, awful place almost as bad as Sears?
Vita Janas (27 days ago)
I love GAP, their style and the kind of lifestyle they are trying to represent. However, I NEVER buy anything full price, because it would be ridiculous to pay that amount of money for their quality. I bought pieces that I absolutely loved, but had to throw away after a few washes because they did not last. Shame... Also, I definitely noticed that quality and prices are different in UK, US and CA. London had the best GAP stores and I miss living/shopping there. Fast fashion is dying, Gen Z kids are a lot more aware, responsible, so going back their roots would be the best solution. If instead of starting new brands or opening more stores they would invest in quality, I think GAP could survive!
Lucy (27 days ago)
Why, if GAP is doing so bad, did they acquire Janie & Jack?
maria alejandra peña arteaga (27 days ago)
I'm literally wearing gap
Jordan Ensminger (27 days ago)
Sets speed to 0.25 at 2:08.
Jennifer Webb (28 days ago)
2:09 ladies!!!
Brendan (28 days ago)
Why is Jim Cramer always either muttering or shouting? There’s no in between
oops i stole your nose (16 days ago)
Brendan cocaine
Shanika B (21 days ago)
Lmao that's true...I either can't understand a word he's saying or have to turn him down
iPhone Kingx (28 days ago)
GAP makes better quality clothes than H&M and Uniqlo....Gap Jeans are indestructible. All they need to do is revamp the style and hire a new designer. BUT DONT CHANGE FABRICS!.
complaining pizza (28 days ago)
i get almost all my clothes from old navy🤩🤩