Gap’s new playbook: Less discounting, more Hailey Bieber
Gap’s sales are improving, but its comeback remains a ‘show-me’ story.
Gap Inc.'s CEO Richard Dickson has embarked on a mission to restore the brand's cultural relevance, moving away from heavy discounting. Recently remodeled Gap stores in New York's Flatiron District showcase framed photos of notable celebrities from the brand's past, including Annie Leibovitz, Bruce Weber, and Hailey Bieber. The CEO has hired designer Zac Posen as creative director for Gap Inc. and chief creative officer for Old Navy.
Celebrity collaborations have included musicians, singers, and actresses like Malcolm Todd, Inde Navarrette, and Victoria Beckham. The Gap's recent "Better in Denim" campaign, featuring a dance number created by the global girl group Katseye, has garnered over 80 million views. Old Navy is partnering with rapper Cardi B on a jeans line.
Despite some signs of recovery, such as a 10% rise in comparable sales in the first quarter of the year, the brand's stock remains down 20% this year and has been relatively flat since Dickson's appointment in 2023.
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