To turn around The Gap, Richard Dickson "must grapple with what might be the most fundamental question possible for a retail CEO: Why do his brands exist?"
This is a tall order (I know from experience). Aside from the small sample of successful #fashion turnarounds (Coach and Abercrombie & Fitch Co. are notable examples), it requires consistency across multiple disciplines, time for consumers to adapt, and often. a few lucky breaks.
Having visited several Gap stores this spring, I agree they've addressed some fundamentals and started to deliver on what Dickson believes is "the secret to building brands:" ... "to give them a strong point of view, make relevant products and then market them in a way that creates emotional connections with consumers."
With all due respect (and I'm rooting for Gap Inc.), it will take multiple seasons to see if they can can translate a #linen campaign into brand #mojo. And it will take more than #PoV, #product, and #marketing. #Retail requires #execution and #engagement at a speed and scale:
- Execution across the plan, buy, make, move, market, sell, and serve functions that results in customers being able to buy.
- Engagement with customers during and across each interaction that collectively comprises their lifecycle with the brand.
To deliver on its brand promise of "originality and self expression," Gap also needs clarity on the "who" -- which customers it's trying to win. On one hand, there are #Millennials and #GenXers with nostalgia for the Gap, who saw this spring's linen campaign and likely thought (as I did) "The Gap finally looks like the Gap again." That's probably the low-hanging fruit, but may not be sustainable for the long haul. On the other hand, there are the #GenZers and #Alphas, many of whom "wouldn’t set foot in a Gap store," but who have a longer spending runway ahead of them.
Having a clear customer PoV (which requires more than just picking a generational cohort) will guide decisions on product (style, size, fit), marketing (message, media), go-to-market (stores, digital, wholesale), experience ("spa music" or "earsplitting" rock/pop), and many operational decisions.
Equally as important is to "lean in" on new capabilities. Gap Inc. needs to build v4.0 of the specialty retail operating model; becoming an #AIFirstRetailer that enables agility at scale and cost. And with this is moving from a "cautious culture" to one that's action-oriented and moves "at pace." Not every idea will work, but fear of change is paralyzing; far worse than trying, learning, and moving forward.
I agree with John Demsey that "I’m not sure Gap will ever be able to recapture what it once was." Luckily, it doesn't need to. The Gap needs to find its niche, build momentum, and start creating Gap Inc. 4.0.
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