What Can Retailers Learn from Gap’s Mistakes?
Q: I just saw that Gap Inc. is closing a quarter of its U.S. stores due to underperformance. I’m curious— in your opinion did they make any inventory planning mistakes that we can all learn from?
Steve Pruitt: This is not unexpected with companies this large and mature. I don’t know the exact locations that are closing, but it’s likely that the locations are past their prime. As for their inventory mix, is there really much difference between Old Navy and Gap? As a customer, if you can buy similar inventory for less money why would you go to the Gap rather than Old Navy?
So, yes, there are some lessons we can learn from this. Pay attention to your market and make sure that you are offering something unique, if not in terms of inventory, at least in terms of point of view, price and styling. And, don’t rest on your laurels. Even when you find success, make sure that you keep setting the bar higher in terms of inventory and service. This will keep your customers coming back for the long run.
