Gap looks to international expansion after logo fiasco

Gap Inc, the owner of US clothes retailer Gap which has been embroiled in a furore over its logo this week, has indicated international and online expansion will drive its future growth.

Gap predicts that by 2013 online and international sales will account for 25% of its business.

Glenn Murphy, chairman and CEO of Gap Inc, says: “While never losing sight of our goal to gain market share in our North American businesses, our strong portfolio of brands combined with several powerful platforms such as outlet, online and franchise give us significant global runway.”

“We’re making the investments necessary to shift the balance of revenue over time to come increasingly from our online and international businesses.”

Earlier this week Gap performed a u-turn over the redesign of its logo following a public backlash that saw the retailer slammed via a public Facebook and Twitter campaign for discarding its iconic “blue box” logo.

Gap used the backlash to invite consumers to take part in a crowdsourcing initiative to submit ideas for the logo design, but was ciriticised for its approach.

The retailer responded by axing the new logo, just a week after introducing it and returned to its old style logo.

Gap Inc, which also owns fashion chains Banana Republic and Old Navy has outlined its top initiatives to boost profitability:

  • Gap: Evolve product aesthetic, marketing and store experience for its target customer
  • Old Navy: Roll out additional store remodels, with the goal of completing 35 percent of its fleet by the end of 2011
  • Banana Republic: Refine its marketing and test new store formats

Read Stuart Smith’s blog on the Gap Logo debacle here

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