Gap Offline Performance Decline Joint Zalando Expansion Online Sales

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And accessories retailer Gap and European clothing accessories business giant Zalando signed, Gap will open its own online store on Zalando website.

Gap was founded in 1969. Its founder is Donald Fisher and Doris F.Fisher, headquartered in San Francisco, California.

Listed in January 13, 1978, it now has 6 brands: Gap, Banana Republic, Old Navy, Piperlime, Intermix and Athleta.

In 1987, Gap opened its first international store in the United Kingdom and continued to expand throughout the continent. Now there are 190 stores and 33 franchising outlets.

In the 2014 Internet Retailer released the top 500 Internet retailing companies in the US, Gap ranked nineteenth. As of the third quarter 2014 November 1st, the online sales in the third quarter of November 1st increased 5.4% to 621 million US dollars in 2013.

But the total sales volume was $3 billion 972 million, which did not change much compared with the total sales volume of US $3 billion 976 million in the same period of 2013.

Excluding online sales, the sales of offline stores actually dropped by nearly 1.1%, while same store sales fell by 2%, of which Gap brand sales fell by 5%, and sales of Banana Republic brands remained flat, while Old Navy grew by 1%.

The Zalando website, launched in 2008, ranks ninth among the 500 top European Internet retailing companies released by Internet Retailer in 2014.

In 2013, Zalando Europe's online sales reached $2 billion 190 million, up 51.7% from 2012's $1 billion 440 million.

The main markets are in Germany, Australia and Switzerland.

Despite the rapid growth of Zalando sales, the stock price after IPO has been only $24.54 recently, lower than its issuing price of $26.73.

Before, Gap has been trying to integrate resources and services online and offline.

Taking into account the fact that 3 of the 10 customers who enter the clothing store will have buying behavior, and 1 of the 10 paction opportunities will not be purchased because they do not have the right size or color.

Therefore, Gap's CEO Glenn Murphy believes that if you can display all the products in the physical store to customers, this will be a great opportunity to enhance performance.

Therefore, Gap set up a distribution center in New York, while supporting physical stores and online order delivery, which can meet most of the needs in the eastern part of the United States. In other cities of the United States, Columbus, OH and Phoenix are also built online.

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Signing the contract with Zalando represents the first time that Gap has entered the multi brand retailing industry in Europe.

David Schneider, a member of the Zalando Management Committee, said Zalando has been trying to maintain the brand new clothing accessories from around the world for 14 million active users on the website.

Gap is one of the most popular brands in the United States, and cooperation between the two sides has helped to expand the product category of Zalando.

After that, Gap will be the executive director of restructured company. Jeff Kirwin, director of Greater China, will take over the position of global director of Stephen Sunnucks in Gap in December 2014; Andi Owen, head of Gap brand sales department, will serve as the global director of Banana Republic brand to replace former Owen.

Only CEO Glenn Murphy, which has been in Gap for many years, will leave the company in February 2015 and take over by Art Peck.