For nearly 20 years (1983-2002), Gap Inc, a leading specialist clothing retailer in the U.S., has been synonymous with its CEO Millard Drexler S., "Trade Prince." However, after three years of decline, like-for-like sales in the period between 1999 and 2002, the term Drexler was over, and Paul S. Pressler, formerly Walt Disney Co, became CEO in October 2002. Pressler closed underperforming stores, reducing excess inventory, and conducted extensive market research to determine the best customer preferences, resulting in turnover in 2003. In late 2003, the company had 9.5% market share in the $ 166.2 billion in the U.S. apparel market. Momentum has slowed somewhat in late 2004 and early 2005. Comparable store sales were flat. In addition, industry observers have expressed concern about the lack of Pressler experience in the garment industry, the cannibalization of brands and fashion mistakes. However, Pressler forecast strong 2005 and identified a number of initiatives, including the best buy, easy to shop environment, improve the supply chain, and new additions to the wall outlet. The firm is also creating a new brand, Forth & Towne. Do these steps will help to restore the momentum? "Hide
by John R. Wells, Elizabeth A. Raabe Source: Harvard Business School 36 pages. Publication Date: July 1, 2005. Prod. #: 706402-PDF-ENG
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