Fast Fashion Group Gap Sales Fell 6% In March

In the five week ending April 2, 2016, the group's same store sales fell 6% in March, up 2% in the same period last year. By brand, Gap brand fell 3%, compared with 7% in the same period last year. Banana Republic fell 14%, down 3% in the same period last year. Old Navy fell 6%, up 14% in the same period last year.

　　 Gap group Sabrina Simmons, chief financial officer, believes that March is challenging but the group is still committed to adopting the necessary measures to improve the performance of the entire investment portfolio throughout the year.

In addition, the group pointed out that more inventory was entered in April than the original plan. The Group expects to pressure the gross profit margin in the first quarter of fiscal year 2016.

Compared with competitors ZARA, H&M and Uniqlo Gap, whether it is brand influence or performance growth, looks gloomy. Gap group's stock has fallen 40% in the past year, which is the worst performing stock in the fast fashion industry.

The continued decline in performance has also led to frequent changes in the senior management of the Gap group, including the resignation of Murphy, chairman and chief executive of the company, which has been in office for 7 years, in February last year. Old Navy global president Stefan Larsson has left the company to join the Ralph Lauren group as chief executive officer; Banana Republic creative director, Marissa Marissa has removed the creative director's position.

According to the analysis, Gap brand In the new environment, it has become a current situation because it lacks a clear target consumer positioning. As a former sales leader of the fashion industry, Gap was rated by Forbes as one of the ten fashion brands that might disappear in the next ten years. The factor behind it may be that the Gap brand blindly cater to all consumers. "In 2014,

Kevin Meany, chief executive of BFG, once said, "Gap brand spirit is hard to pass on to the next generation. Gap is at an awkward stage of development. For innovative brands, it is too old, and for retro brand, it is too new.

In order to satisfy the wider consumers, Gap brands are paying the price frequently without the bottom line. Consumers are waiting for the promotion period to buy products. Gap and Banana Republic are not the only ones that use high sales promotion to attract customers. Gap group's brands such as Loft and Old Navy are adopting the same strategy. Their low price promotion measures have become the focus of debate in the industry.

According to the group's data, Gap group's net sales amounted to US $15 billion 800 million as of fiscal year 2015. There are about 3300 stores and more than 440 franchised stores in 90 cities around the world. Gap group will announce its April sales performance in May 9, 2016.