{"id":15346,"date":"2015-07-19T01:20:32","date_gmt":"2015-07-19T08:20:32","guid":{"rendered":"http:\/\/www.denimsandjeans.com\/?p=15346"},"modified":"2016-05-31T04:42:38","modified_gmt":"2016-05-31T11:42:38","slug":"gap-looses-us-market-share","status":"publish","type":"post","link":"https:\/\/www.denimsandjeans.com\/recovery\/latest-denim-reports\/denim-data-figures\/gap-looses-us-market-share\/15346","title":{"rendered":"Gap Looses US Market Share"},"content":{"rendered":"<p>US retail market is highly competitive and a large number of Speciality stores, Brand Stores, Discount stores, Departmental Stores compete with each other \u00e2\u20ac\u201c continuously striving to get the attention of the American customer who is not increasing his spending but is reallocating his funds between different brands and retailers. This reallocation of money by buyers is benefitting some retailers while others are losing . Gap , unfortunately, is finding its place among the latter. The most sought after casual brand in US may not remain so in the coming years as&nbsp; Gap\u00e2\u20ac\u2122s share of US apparel market fell from 5.1% to 4.7% over the past five years with a recovery not in sight. Let\u00e2\u20ac\u2122s see how Gap stacks in comparison to other <a href=\"http:\/\/www.forbes.com\/sites\/greatspeculations\/2015\/07\/15\/gap-inc-is-gradually-losing-its-share-in-the-u-s-apparel-market-to-fast-fashion-counterparts\/\" target=\"_blank\">apparel retailers<\/a> in US.<\/p>\n<p>1. Multi brand retail chain <strong>Macy\u00e2\u20ac\u2122s <\/strong>: 9% approx.<br \/>2. General Merchandise retailers<\/p>\n<ul>\n<li><strong>Wal Mart \u00e2\u20ac\u201c 7% approx.<\/strong>\n<li><strong>Target \u00e2\u20ac\u201c 5.4%<\/strong>\n<li><strong><span style=\"color: #ff0000\">Gap \u00e2\u20ac\u201c 4.7%<\/span><\/strong>\n<li><strong>JC Penny \u00e2\u20ac\u201c 3.3%<\/strong>\n<li><strong>American Eagle, Aeropostale and A&amp;F \u00e2\u20ac\u201c 2% each approx. <\/strong><\/li>\n<\/ul>\n<p>The remaining 65% share is held by a number of private label brands , pure online players, fast fashion players , department stores etc. Here is a break up of the market share as per Forbes.<\/p>\n<p><a href=\"http:\/\/www.denimsandjeans.com\/wp-content\/uploads\/2015\/07\/U.S.ApparelMarketShare.png\"><img loading=\"lazy\" decoding=\"async\" title=\"U.S.-Apparel-Market-Share\" style=\"border-left-width: 0px; border-right-width: 0px; border-bottom-width: 0px; display: inline; border-top-width: 0px\" border=\"0\" alt=\"U.S.-Apparel-Market-Share\" src=\"http:\/\/www.denimsandjeans.com\/wp-content\/uploads\/2015\/07\/U.S.ApparelMarketShare_thumb.png\" width=\"800\" height=\"529\"><\/a><\/p>\n<p><span style=\"font-size: xx-small; color: #808080\">Source : Forbes.com<\/span><br \/><a href=\"http:\/\/www.denimsandjeans.com\/wp-content\/uploads\/2015\/07\/gapincmarketsharetrend.png\"><img loading=\"lazy\" decoding=\"async\" title=\"gap-inc-market-share-trend\" style=\"border-left-width: 0px; border-right-width: 0px; border-bottom-width: 0px; display: inline; border-top-width: 0px\" border=\"0\" alt=\"gap-inc-market-share-trend\" src=\"http:\/\/www.denimsandjeans.com\/wp-content\/uploads\/2015\/07\/gapincmarketsharetrend_thumb.png\" width=\"800\" height=\"585\"><\/a><\/p>\n<p><span style=\"font-size: xx-small; color: #c0c0c0\">Source: Forbes.com<\/span><\/p>\n<p>Whereas Gap\u00e2\u20ac\u2122s market share has reduced from 1.71% is 2009 to 1.41% is 2014, that of Old Navy and Banana Republic has also fallen. The reason for growth of share from 4.34% in 2012 to 4.71% in 2014 has been the growth driver brands <strong>Athleta<\/strong> and the acquisition of<strong> Intermix<\/strong>.<\/p>\n<p>One of the major reasons for Gap losing its market share has been the growth of fast fashion retailers&nbsp; like the <strong>Inditex , H&amp;M<\/strong> and to some extent <strong>Forever 21<\/strong>. There has been a constant movement of buyers from casual clothing to affordable fast fashion. Today\u00e2\u20ac\u2122s teenagers are getting less attached to brands and are more concerned over having a fresh look every few days. Technology is pushing this trend. With the proliferation of&nbsp; \u00e2\u20ac\u02dcWhatsapp\u00e2\u20ac\u2122, \u00e2\u20ac\u02dcViber\u00e2\u20ac\u2122,&#8217;Facebook\u00e2\u20ac\u2122 and the likes , the SELFIE culture is becoming a dominant youth phenomenon constantly pushing these young ones to <strong><u>look better and share<\/u><\/strong> . This trend is helping fast fashion retailers like Inditex and hurting the long established ones like GAP. This has become one major factor affecting GAP\u00e2\u20ac\u2122s performance .And related to this has been the other reason of underperformance \u00e2\u20ac\u201c poor performance of GAP\u00e2\u20ac\u2122s women\u00e2\u20ac\u2122s business \u00e2\u20ac\u201c while its other business including men, kids and baby are doing reasonably well.<\/p>\n<p>The result has been clear for GAP. It has planned to close 175 of its speciality GAP Inc stores \u00e2\u20ac\u201cwith 140 going down this year and balance in the year next. After these closures it will have about 800 stores in US. It is expected to lose about $300 million from these closures- an amount which is expected to be covered from better performance from other channels including Online.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US retail market is highly competitive and a large number of Speciality stores, Brand Stores, Discount stores, Departmental Stores compete with each other \u00e2\u20ac\u201c continuously striving to get the attention of the American customer who is not increasing his spending but is reallocating his funds between different brands and retailers. This reallocation of money by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16573,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,355,1318],"tags":[1350,272],"class_list":["post-15346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-denim-data-figures","category-latest-denim-reports","category-news","tag-news-2","tag-us-denim"],"_links":{"self":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts\/15346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/comments?post=15346"}],"version-history":[{"count":0,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts\/15346\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/media\/16573"}],"wp:attachment":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/media?parent=15346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/categories?post=15346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/tags?post=15346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}