Gap looks beyond apparel to drive growth

The news: Gap Inc. is looking to become more than an apparel company. The retailer recently hired former Paramount executive Jamie Drew as its head of strategic partnerships and growth, aiming to extend its brands’ influence into non-fashion sectors like travel, sports and wellness, gaming, and food and beverage, the company told Business Insider.

What it means: These new partnerships are meant to mesh with Gap’s broader “fashiontainment” strategy, which relies on entertainment, content, and licensing deals to drive cultural relevance and, consequently, sales. Expanding into new sectors could bring more customers into the company’s ecosystem and deepen ties with existing ones—a handy combination in an increasingly competitive apparel industry.

Gap is already taking steps to broaden the products shoppers buy from its brands. Its namesake brand recently launched a bag collection designed by former Coach creative director Reed Krakoff. The company is also leaning hard into beauty with the revival of its Gap Beauty line and the launch of Old Navy Beauty Co. online and in 500 US stores.

But expanding into non-fashion adjacent categories will bring a much larger credibility test. While Gap’s star is on the rise, it has yet to demonstrate the pull of a brand like Ralph Lauren, whose luxury positioning enhances the appeal of more accessible offerings like Ralph’s Coffee. And none of the company’s other brands are in a strong enough position to support a sustained push away from their core businesses. Both Old Navy and Athleta reported declining comparable sales for Q2 as they struggled to connect with shoppers, while growth at Banana Republic was tepid.

Implications for retail: Gap’s new hire shows the pressures facing apparel brands as they compete for attention in a highly competitive market. The company’s culture-first strategy has led to some wins—most notably with its viral Katseye campaign—but expansion into new categories will depend on the pull of the underlying brands. Ongoing struggles at Old Navy and Athleta show that Gap needs to strengthen its weaker banners before asking consumers to follow them beyond their core businesses.

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