Fast Fashion GAP Sales Performance Goes From Bad To Worse, Counterattack Challenges.

GAP seized the group of young people who were in the forefront of the trend in the 90s of last century, and now they are struggling to keep the hearts of the millennial generation locked up.

October 8th, american apparel retailers

The group's share price fell 7% after announces September sales fell 1% year-on-year.

The group's namesake brand GAP's revenue did not change year by year, but its other two brands did not meet analysts' expectations.

Previously, the once favored brand Banana Republic (Banana Republic) declined by 10% in the 5 week ended October 3rd compared with last year, and another popular brand.

Sales increased by 4%.

The fashion brand, based in San Francisco, once occupied the wardrobe of young fashionable customers.

Shharon Stone (Sharon Stone) even wore a high collar shirt and a Valentino.

Attended the Oscar prize presentation ceremony in 1996.

GAP has changed 4 CEO in the past 15 years, but sales have gone from bad to worse.

In the face of H&M, Zara and UNIQLO's rising stars, GAP seems to be getting weaker and weaker.

One of the reasons behind it is that the current situation of the American Apparel Retailing industry can not be ignored.

Regardless of the recent bankruptcy of American Apparel, including the Abercrombie &Fitch and J.Crew, the iconic brands in the United States are experiencing a colder market situation. The words "layoffs", "rectification" and "closing" appear frequently in various media headlines.

In June this year, GAP announced the closure of its 1/4 store in North America (175), while cutting 250 employees at headquarters.

This is also the first CEO Art Peck's first action on sales channels.

The Art Peck, who took office in February 1st this year, was responsible for the group's growth, innovation and digital sector. His high hopes were to reverse the situation.

As he said at the May earnings conference this year, "I am disappointed that Gap women's clothing business is very difficult and has been challenged for several quarters, but it is not surprising."

GAP did not expect to return to life. In the first quarter of 2015, the group's profits fell below analysts' expectations for the first time in 8 years, and its share price fell by 31% in the six months ended October 8th.

However, the trouble is more than that. The top executives of the group have recently left.

The biggest move is Old Navy, whose president Stefan Larsson was last week's Ralph Lauren as the CEO.

After Stefan Larsson entered GAP in 2012, Old Navy achieved profit growth for three consecutive years, and its sales volume increased by US $1 billion (about 6 billion 345 million yuan).

Before that, he worked in another fast fashion company, H&M, for 15 years.

Paul Lejuez, an investment research analyst at Citibank, said: "Larsson's departure is just like the loss of the star quarterback, and it is even harder for GAP to reverse the situation."

He lowered the annual profit forecast for GAP.

And the Old Navy sister brand Banana Republic is also facing the dilemma of being without a master, and creative director Marissa Webb is leaving after 18 months in charge.

Although she says she will stay in the company as a creative consultant, she will focus on the operation of her brand.

With designers and executives taking the lead, the designers' response to the trend and cheap productivity have become the basis for the group to turn over.

However, compared to the new and fast replenishment Zara and H&M, GAP is obviously shorter.

In terms of pricing, GAP still has no advantage.

Art Peck announced in an interview with Bloomberg after announces its marketing results in September, "the failure of Banana Republic women's clothing is that they do not meet the needs of consumers."

After questioning, he admitted that the clothes had not reached the purpose and the overall effect that the price should provide.

This may be the key factor for clothes to be unpopular.