Gap (clothing retailer)
Encyclopedia
The Gap, Inc. is an American clothing and accessories retailer based in San Francisco, California, and founded in 1969 by Donald G. Fisher and Doris F. Fisher. The company has five primary brands: the namesake Gap banner, Banana Republic, Old Navy
, Piperlime
and Athleta. As of September 2008, Gap, Inc. has approximately 135,000 employees and operates 3,076 stores worldwide, of which 2,551 are in the United States. Gap, Inc. remains the largest specialty apparel retailer in the U.S., though it has recently been surpassed by the Spanish-based Inditex
Group as the world's largest apparel retailer.
Despite the company's publicly traded status, the Fisher family remains deeply involved in Gap, Inc.'s business and collectively owns a significant quantity of the company's stock.
Donald Fisher
served as Chairman of the Board
until 2004 and remained on the board until his death on September 27, 2009. His wife and their son, Robert J. Fisher
, also serve on Gap's board of directors. Robert Fisher succeeded his father as chair in 2004 and also became president and CEO on an interim basis following the resignation of Paul Pressler
in 2007.
Glenn K. Murphy is the current CEO
of the company. Previous Gap, Inc. CEOs include Millard Drexler
and Paul Pressler.
. The Fishers had raised $63,000 to open the store, and in one year, Gap's sales had reached $2 million. In 1970, Gap opened its second store, in San Jose, California
, and established its first corporate headquarters in Burlingame, California
, with just four employees. Gap grew rapidly. By 1973, it had more than 25 stores, including areas outside California—entering the East Coast market with a store in Voorhees, New Jersey
. In 1974, Gap began to sell private-label merchandise.
In October 2011, with U.S. sales eroding due to specialty retailers like Abercrombie & Fitch
and cheap chic merchants like H&M
, Gap Inc. announced plans to close 189 stores (approximately 21 percent of U.S. Gap stores) by the end of 2013. The company, however, plans to expand its presence in China
.
was launched in 1994, as a value chain with a specialty flair. Forth & Towne
, the company's fourth traditional retail concept, was launched on August 24, 2005, featuring apparel targeted toward women 35 and older. On February 26, 2007 after an 18-month trial period, Forth & Towne was discontinued, and the 19 stores were closed. A fifth brand, the online footwear retailer Piperlime
, was created in 2006. A sixth brand, Athleta, a women's athletic wear line was added in 2009.
Gap's Sales by Division in Q1 2009
chain is designed to appeal to families and younger customers by emphasizing "fun, fashion, and value" through a store experience that aims to deliver "energy and excitement." Although Gap, Inc., along with other retail-store chains, has been criticized for blandness and uniformity in its selling environments, the company maintains that it tailors its stores "to appeal to unique markets" by developing multiple formats and designs.
of the time). Gap's originally sold signature blue jeans and white cotton t-shirts, but later expanded to include clothing for men, women and children.
, Malaysia, United Arab Emirates
, Korea, Kuwait
, Qatar
, Bahrain
, Oman
, Saudi Arabia
, Cambodia
, Indonesia
and Mexico. As of February 3, 2007, The Gap, Inc. operates a total of 3,131 store locations. In January 2008, Gap signed a deal with Marinopoulos Group to open Gap and Banana Republic stores in Greece, Romania
, Bulgaria
, Cyprus
and Croatia
. In February 2009, Elbit Imaging, Ltd. secured a franchise to open and operate Gap and Banana Republic stores in Israel
. In August 2010 GAP will be opening its first store in Melbourne
, Australia at Chadstone Shopping Centre
. In September 2011, Komax will be opening the first GAP store in Chile, due to a franchise. In October 2011, the first GAP store will open in Warsaw
, Poland
.
survey.
for retail clothing store services. The application was filed with the USPTO
on February 29, 1972 by The Gap Stores located in Burlingame, California. First use anywhere was on August 23, 1969 and commercial use on October 17, 1969. Registration was granted on October 10, 1972.
A second application was filed by Gap Stores, Inc. on September 12, 1974. This time, the new application was for a trademark
filed for Shirt
s. First use and commercial use for shirts and clothing products was on June 25, 1974. Trademark registration was granted on December 28, 1976.
Both the service mark and trademark are registered and owned by Gap (Apparel), LLC of San Francisco, California.
, named after the visible gap in the nearby Bootleg Mountain. After three years of negotiations, and lacking the funds to defend itself in court, the golf course agreed to remove the word "Gap" from its restaurant and 27 holes. It also renamed its clothing line "Bootleg Golf." The legal costs from the negotiations and rebranding delayed landscaping and cart paving projects for the golf course.
lawsuit filed by sweatshop
workers in Saipan
. The allegations included "off the clock" hours, where workers were not paid for working overtime, unsafe working conditions, and forced abortion policies. A settlement of 20 million dollars was reached whereby The Gap did not admit liability.
In 2007, Ethisphere Magazine (an industry publication) chose Gap from among thousands of companies evaluated as one of 100 "World’s Most Ethical Companies." Gap, Inc. was ranked 25th by CRO Magazine, another industry publication that is a successor to Business Ethics magazine, in its “100 Best Corporate Citizens” list in 2007.
Nevertheless, the company draws continued criticism over labor practices. In May 2006, adult and child employees of Western, a supplier in Jordan
, were found to have worked up to 109 hours per week and to have gone six months without being paid. Some employees claimed they had been raped by managers. Most of these allegations were directed at Wal-Mart (who mostly ignored the claims), while Gap immediately looked into the matter to remedy the situation.
On October 28, 2007, BBC
footage showed child labor
being used in Indian Gap factories. Gap has denied that it was aware of such happenings and that it is against its policy to use child labour. The one piece of clothing in question — a smock blouse — was removed from a British store and will be destroyed. Ironically, Gap promised to investigate breaches in its ethical policy.
campaign (www.joinred.org). In early 2006, they released a special RED collection, including a T-shirt manufactured in Lesotho
from African cotton. The expanded Gap Product Red collection was released October 13, 2006. 50%-100% of the profits went to the Global Fund; depending on the item. Gap continued on with Gap Product Red
items into the 2007 New Year, especially in the lead up to Valentine's Day, using slogans such as "Admi(RED)" and "Desi(RED)." Product Red has now contributed over $45 million to the Global Fund, more than any other private donation received to date.
Other launch partners included American Express
, Apple Inc., Converse, Hallmark, Emporio Armani and Motorola
.
Their commercials featuring songs such as "Lovely Day" remain some of the most successful and memorable usages of television advertising in history.
with Robert J. Fisher
, chairman of the board and son of the company's founders, and who would lead Gap on an interim basis as it searched for a new CEO. The board's search committee would be led by Adrian Bellamy, chairman of The Body Shop International
and include founder Donald Fisher. The company said it would "focus [its] efforts on recruiting a chief executive officer who has deep retailing and merchandising experience ideally in apparel, understands the creative process and can effectively execute strategies in large, complex environments while maintaining strong financial discipline." Robert Fisher stressed his personal ties and 30-year professional history in operating roles at the company and as a board member. He started with the company in 1980 as a store manager and worked his way up the company's merchandising ranks and senior executive leadership positions, including president of Banana Republic and the Gap units. He had joined the board in 1990.
On February 2, 2007, CEO Bob Fisher announced that Marka Hansen, a 20-year veteran of the company who headed the Banana Republic unit, was chosen to lead the Gap unit, replacing Cynthia Harriss
, who had been hired by former CEO Pressler in 2004. Hansen had held a variety of positions with the company, mostly in merchandising. Jack Calhoun, an executive vice president for marketing and merchandising became interim president of the Banana Republic unit.
In May 2007, Old Navy laid off approximately 300 managers in the lower volume Old Navy stores to help streamline costs.
On July 26, 2007, Gap announced that Glenn Murphy, previously CEO of Shoppers Drug Mart in Canada, was announced as the new CEO of Gap, Inc.
New lead designers were also brought on board to help define a fashionable image. Patrick Robinson
for Gap Adult, Simon Kneen for Banana Republic, and Todd Oldham
for Old Navy.
typeface and did away with the blue box that had become iconic with the brand. There was a public outcry against the new logo, especially in the graphic design
community. The company returned to its previous "blue box" logo on October 12, only a week after the new logo's debut. Marka Hansen, the executive who oversaw the logo change, resigned February 1, 2011.
Old Navy
Old Navy is an American clothing brand as well as a chain of stores owned by Gap, Inc., with corporate operations in San Francisco and San Bruno, California. It is one of the first major corporations to house headquarters in the new Mission Bay district of San Francisco.Gap, Inc. was run by...
, Piperlime
Piperlime
Piperlime is a San Francisco, California-based online retail company. Founded as a spin-off in 2006 by Gap Inc., Piperlime offers a selection of footwear and handbags for women, men and children...
and Athleta. As of September 2008, Gap, Inc. has approximately 135,000 employees and operates 3,076 stores worldwide, of which 2,551 are in the United States. Gap, Inc. remains the largest specialty apparel retailer in the U.S., though it has recently been surpassed by the Spanish-based Inditex
Inditex
Industria de Diseño Textil, S.A. , more commonly known as Inditex, is a large Spanish corporation and the world's largest fashion group. It is made up of almost a hundred companies dealing with activities related to textile design, production and distribution...
Group as the world's largest apparel retailer.
Despite the company's publicly traded status, the Fisher family remains deeply involved in Gap, Inc.'s business and collectively owns a significant quantity of the company's stock.
Donald Fisher
Donald Fisher
Donald George Fisher was an American businessman who founded The Gap clothing stores.-Personal history:...
served as Chairman of the Board
Chairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
until 2004 and remained on the board until his death on September 27, 2009. His wife and their son, Robert J. Fisher
Robert J. Fisher
Robert J. Fisher has been a director of Gap Inc. since 1990; he was previously chairman of the board and interim chief executive officer. The son of Gap Inc. founders Donald Fisher and Doris F...
, also serve on Gap's board of directors. Robert Fisher succeeded his father as chair in 2004 and also became president and CEO on an interim basis following the resignation of Paul Pressler
Paul Pressler
Paul Pressler is an advisor of the New York- and London-based private equity firm Clayton, Dubilier & Rice. Formerly president and CEO of Gap, Inc...
in 2007.
Glenn K. Murphy is the current CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of the company. Previous Gap, Inc. CEOs include Millard Drexler
Millard Drexler
Millard "Mickey" S. Drexler is the current chairman and CEO of J.Crew Group and formerly the CEO of Gap Inc. He has been a director at Apple Inc. since 1999....
and Paul Pressler.
History
On August 21, 1969, Donald and Doris Fisher opened the first Gap store on Ocean Avenue in San Francisco. The store's merchandise consisted of Levi's and LPsLP album
The LP, or long-playing microgroove record, is a format for phonograph records, an analog sound storage medium. Introduced by Columbia Records in 1948, it was soon adopted as a new standard by the entire record industry...
. The Fishers had raised $63,000 to open the store, and in one year, Gap's sales had reached $2 million. In 1970, Gap opened its second store, in San Jose, California
San Jose, California
San Jose is the third-largest city in California, the tenth-largest in the U.S., and the county seat of Santa Clara County which is located at the southern end of San Francisco Bay...
, and established its first corporate headquarters in Burlingame, California
Burlingame, California
Burlingame is a city in San Mateo County, California. It is located on the San Francisco Peninsula and has a significant shoreline on San Francisco Bay. The city is named after diplomat Anson Burlingame. It is renowned for its many surviving examples of Victorian architecture, its affluence, and...
, with just four employees. Gap grew rapidly. By 1973, it had more than 25 stores, including areas outside California—entering the East Coast market with a store in Voorhees, New Jersey
Echelon Mall
Voorhees Town Center is a small regional shopping mall and a future residential area located in Voorhees Township, New Jersey, United States...
. In 1974, Gap began to sell private-label merchandise.
In October 2011, with U.S. sales eroding due to specialty retailers like Abercrombie & Fitch
Abercrombie & Fitch
Abercrombie & Fitch is an American retailer that focuses on casual wear for consumers aged 18 to 22. It has over 300 locations in the United States, and is expanding internationally....
and cheap chic merchants like H&M
H&M
H & M Hennes & Mauritz AB is a Swedish retail-clothing company, known for its fast-fashion clothing offerings for women, men, teenagers and children....
, Gap Inc. announced plans to close 189 stores (approximately 21 percent of U.S. Gap stores) by the end of 2013. The company, however, plans to expand its presence in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
Brands
Banana Republic, formerly a small retailer selling safari-themed clothing, was purchased by the company in 1983, and eventually was rebranded as an upscale clothing retailer in the late 1980s. Old NavyOld Navy
Old Navy is an American clothing brand as well as a chain of stores owned by Gap, Inc., with corporate operations in San Francisco and San Bruno, California. It is one of the first major corporations to house headquarters in the new Mission Bay district of San Francisco.Gap, Inc. was run by...
was launched in 1994, as a value chain with a specialty flair. Forth & Towne
Forth & Towne
Forth & Towne is a defunct brand of clothing stores owned by Gap Inc., which owns Gap, Banana Republic, and Old Navy brands. It operated several test stores in the Chicago , Atlanta, and New York areas...
, the company's fourth traditional retail concept, was launched on August 24, 2005, featuring apparel targeted toward women 35 and older. On February 26, 2007 after an 18-month trial period, Forth & Towne was discontinued, and the 19 stores were closed. A fifth brand, the online footwear retailer Piperlime
Piperlime
Piperlime is a San Francisco, California-based online retail company. Founded as a spin-off in 2006 by Gap Inc., Piperlime offers a selection of footwear and handbags for women, men and children...
, was created in 2006. A sixth brand, Athleta, a women's athletic wear line was added in 2009.
Gap's Sales by Division in Q1 2009
| Divisions | Total revenue |
| Gap North America | $834 million |
| Banana Republic North America | $475 million |
| Old Navy North America | $1.18 billion |
| International | $369 million |
| Gap Inc Direct | $267 million |
Store count
As of April 30, 2011, Gap Inc. had 3,245 company-owned and franchise store locations, compared with 3,232 store locations last year. The company expects to open about 200 store locations and to close about 125 store locations in fiscal year 2011. Those in Canada, China, Croatia, France, Italy, Ireland, Japan, UK, and US (excluded Puerto Rico) are company-owned. Stores outside of these countries are owned and operated by franchises.Gap 3 2 1 93 1 1 1 1 39 2 0 3 3 5 10 133 1 2 2 4 1 1 1 1 5 9 6 1 2 11 19 1 4 6 4 10 1 14 140 1,011 |
Banana Republic 1 1 40 1 3 3 1 28 1 3 1 4 4 1 2 1 5 4 2 6 536 |
Old Navy 64 1 7 957 |
Athleta 2 (3 opening in 2011) |
Marketing strategy
The Banana Republic stores try to convey a more sophisticated image for an upscale customer seeking "modern, accessible luxury," whereas Gap stores appeal to a broader demographic of customers. The Old NavyOld Navy
Old Navy is an American clothing brand as well as a chain of stores owned by Gap, Inc., with corporate operations in San Francisco and San Bruno, California. It is one of the first major corporations to house headquarters in the new Mission Bay district of San Francisco.Gap, Inc. was run by...
chain is designed to appeal to families and younger customers by emphasizing "fun, fashion, and value" through a store experience that aims to deliver "energy and excitement." Although Gap, Inc., along with other retail-store chains, has been criticized for blandness and uniformity in its selling environments, the company maintains that it tailors its stores "to appeal to unique markets" by developing multiple formats and designs.
Products
When Gap was founded in 1969, its targeted customers were younger generations (hence the name of the store, which refers to the generation gapGeneration gap
The generational gap is and was a term popularized in Western countries during the 1960s referring to differences between people of a younger generation and their elders, especially between children and parents....
of the time). Gap's originally sold signature blue jeans and white cotton t-shirts, but later expanded to include clothing for men, women and children.
Place
Gap's main opportunity to reach its customer is through its stores. Gap operates stores in the United States, Canada, the United Kingdom, France, Ireland, Korea, Japan and China. The Gap, Inc. also has franchise agreements with unaffiliated franchisees to operate Gap or Banana Republic stores in Philippine, SingaporeSingapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, Malaysia, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
, Korea, Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
, Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
, Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
, Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
, Cambodia
Cambodia
Cambodia , officially known as the Kingdom of Cambodia, is a country located in the southern portion of the Indochina Peninsula in Southeast Asia...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
and Mexico. As of February 3, 2007, The Gap, Inc. operates a total of 3,131 store locations. In January 2008, Gap signed a deal with Marinopoulos Group to open Gap and Banana Republic stores in Greece, Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
, Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
, Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
and Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
. In February 2009, Elbit Imaging, Ltd. secured a franchise to open and operate Gap and Banana Republic stores in Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
. In August 2010 GAP will be opening its first store in Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
, Australia at Chadstone Shopping Centre
Chadstone Shopping Centre
Chadstone Shopping Centre is a super regional shopping centre located in the inner south-eastern suburb of Malvern East in the city of Melbourne, Australia...
. In September 2011, Komax will be opening the first GAP store in Chile, due to a franchise. In October 2011, the first GAP store will open in Warsaw
Warsaw
Warsaw is the capital and largest city of Poland. It is located on the Vistula River, roughly from the Baltic Sea and from the Carpathian Mountains. Its population in 2010 was estimated at 1,716,855 residents with a greater metropolitan area of 2,631,902 residents, making Warsaw the 10th most...
, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
.
Online
The domain www.gap.com attracts over 18 million visitors annually, according to a 2008 Compete.comCompete.com
Compete.com is a web traffic analysis service of Compete, Inc. which operates in the United States and publishes the approximate number of global visitors to the top 1,000,000 web sites in the world...
survey.
The Gap trademark
The original trademark for The Gap was as a service markService mark
A service mark or servicemark is a trademark used in some countries, notably the United States, to identify a service rather than a product. When a service mark is federally registered, the standard registration symbol ® or "Reg U.S. Pat & TM Off" may be used...
for retail clothing store services. The application was filed with the USPTO
United States Patent and Trademark Office
The United States Patent and Trademark Office is an agency in the United States Department of Commerce that issues patents to inventors and businesses for their inventions, and trademark registration for product and intellectual property identification.The USPTO is based in Alexandria, Virginia,...
on February 29, 1972 by The Gap Stores located in Burlingame, California. First use anywhere was on August 23, 1969 and commercial use on October 17, 1969. Registration was granted on October 10, 1972.
A second application was filed by Gap Stores, Inc. on September 12, 1974. This time, the new application was for a trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
filed for Shirt
Shirt
A shirt is a cloth garment for the upper body. Originally an undergarment worn exclusively by men, it has become, in American English, a catch-all term for almost any garment other than outerwear such as sweaters, coats, jackets, or undergarments such as bras, vests or base layers...
s. First use and commercial use for shirts and clothing products was on June 25, 1974. Trademark registration was granted on December 28, 1976.
Both the service mark and trademark are registered and owned by Gap (Apparel), LLC of San Francisco, California.
Trademark dispute
The company owns a trademark to its name, the "Gap", which is also a common English word with multiple definitions. This has led to conflicts over use in other products and locations. For example, the company threatened litigation against Bootleg Gap, a golf course in Kimberley, British ColumbiaKimberley, British Columbia
Kimberley is a small city in southeast British Columbia, Canada along Highway 95A between the Purcell and Rocky Mountains. Kimberley was named in 1896 after the Kimberley mine in South Africa. From 1917 to 2001, it was the home to the world's largest lead-zinc mine, the Sullivan Mine...
, named after the visible gap in the nearby Bootleg Mountain. After three years of negotiations, and lacking the funds to defend itself in court, the golf course agreed to remove the word "Gap" from its restaurant and 27 holes. It also renamed its clothing line "Bootleg Golf." The legal costs from the negotiations and rebranding delayed landscaping and cart paving projects for the golf course.
Labor practices
In 2003, Gap, along with 21 other companies, was involved in a class actionClass action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
lawsuit filed by sweatshop
Sweatshop
Sweatshop is a negatively connoted term for any working environment considered to be unacceptably difficult or dangerous. Sweatshop workers often work long hours for very low pay, regardless of laws mandating overtime pay or a minimum wage. Child labour laws may be violated. Sweatshops may have...
workers in Saipan
Saipan
Saipan is the largest island of the United States Commonwealth of the Northern Mariana Islands , a chain of 15 tropical islands belonging to the Marianas archipelago in the western Pacific Ocean with a total area of . The 2000 census population was 62,392...
. The allegations included "off the clock" hours, where workers were not paid for working overtime, unsafe working conditions, and forced abortion policies. A settlement of 20 million dollars was reached whereby The Gap did not admit liability.
In 2007, Ethisphere Magazine (an industry publication) chose Gap from among thousands of companies evaluated as one of 100 "World’s Most Ethical Companies." Gap, Inc. was ranked 25th by CRO Magazine, another industry publication that is a successor to Business Ethics magazine, in its “100 Best Corporate Citizens” list in 2007.
Nevertheless, the company draws continued criticism over labor practices. In May 2006, adult and child employees of Western, a supplier in Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
, were found to have worked up to 109 hours per week and to have gone six months without being paid. Some employees claimed they had been raped by managers. Most of these allegations were directed at Wal-Mart (who mostly ignored the claims), while Gap immediately looked into the matter to remedy the situation.
On October 28, 2007, BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
footage showed child labor
Child labor
Child labour refers to the employment of children at regular and sustained labour. This practice is considered exploitative by many international organizations and is illegal in many countries...
being used in Indian Gap factories. Gap has denied that it was aware of such happenings and that it is against its policy to use child labour. The one piece of clothing in question — a smock blouse — was removed from a British store and will be destroyed. Ironically, Gap promised to investigate breaches in its ethical policy.
Product Red support
Gap took part in the Product RedProduct Red
Product Red, styled as RED, is a brand licensed to partner companies such as Nike, American Express , Apple Inc., Starbucks, Converse, Bugaboo, Penguin Classics , Gap, Emporio Armani, Hallmark and Dell...
campaign (www.joinred.org). In early 2006, they released a special RED collection, including a T-shirt manufactured in Lesotho
Lesotho
Lesotho , officially the Kingdom of Lesotho, is a landlocked country and enclave, surrounded by the Republic of South Africa. It is just over in size with a population of approximately 2,067,000. Its capital and largest city is Maseru. Lesotho is a member of the Commonwealth of Nations. The name...
from African cotton. The expanded Gap Product Red collection was released October 13, 2006. 50%-100% of the profits went to the Global Fund; depending on the item. Gap continued on with Gap Product Red
Product Red
Product Red, styled as RED, is a brand licensed to partner companies such as Nike, American Express , Apple Inc., Starbucks, Converse, Bugaboo, Penguin Classics , Gap, Emporio Armani, Hallmark and Dell...
items into the 2007 New Year, especially in the lead up to Valentine's Day, using slogans such as "Admi(RED)" and "Desi(RED)." Product Red has now contributed over $45 million to the Global Fund, more than any other private donation received to date.
Other launch partners included American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
, Apple Inc., Converse, Hallmark, Emporio Armani and Motorola
Motorola
Motorola, Inc. was an American multinational telecommunications company based in Schaumburg, Illinois, which was eventually divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011, after losing $4.3 billion from 2007 to 2009...
.
Public figures in ad campaigns
Gap frequently features public figures in its print and television advertisements. They have featured over 308 celebrities of various stature in their campaigns.Their commercials featuring songs such as "Lovely Day" remain some of the most successful and memorable usages of television advertising in history.
Management reshuffle
On January 23, 2007, Gap announced that it was replacing CEO Paul PresslerPaul Pressler
Paul Pressler is an advisor of the New York- and London-based private equity firm Clayton, Dubilier & Rice. Formerly president and CEO of Gap, Inc...
with Robert J. Fisher
Robert J. Fisher
Robert J. Fisher has been a director of Gap Inc. since 1990; he was previously chairman of the board and interim chief executive officer. The son of Gap Inc. founders Donald Fisher and Doris F...
, chairman of the board and son of the company's founders, and who would lead Gap on an interim basis as it searched for a new CEO. The board's search committee would be led by Adrian Bellamy, chairman of The Body Shop International
The Body Shop
The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries, and is the second largest cosmetic franchise in the world, following O Boticario, a Brazilian company...
and include founder Donald Fisher. The company said it would "focus [its] efforts on recruiting a chief executive officer who has deep retailing and merchandising experience ideally in apparel, understands the creative process and can effectively execute strategies in large, complex environments while maintaining strong financial discipline." Robert Fisher stressed his personal ties and 30-year professional history in operating roles at the company and as a board member. He started with the company in 1980 as a store manager and worked his way up the company's merchandising ranks and senior executive leadership positions, including president of Banana Republic and the Gap units. He had joined the board in 1990.
On February 2, 2007, CEO Bob Fisher announced that Marka Hansen, a 20-year veteran of the company who headed the Banana Republic unit, was chosen to lead the Gap unit, replacing Cynthia Harriss
Cynthia Harriss
Cynthia Harriss is an American retail and tourism industry executive, most notable for her senior roles with Gap Inc. and The Walt Disney Company.-Early life:Harriss was born Indiana and received a bachelor's degree from St. Louis University in Missouri...
, who had been hired by former CEO Pressler in 2004. Hansen had held a variety of positions with the company, mostly in merchandising. Jack Calhoun, an executive vice president for marketing and merchandising became interim president of the Banana Republic unit.
In May 2007, Old Navy laid off approximately 300 managers in the lower volume Old Navy stores to help streamline costs.
On July 26, 2007, Gap announced that Glenn Murphy, previously CEO of Shoppers Drug Mart in Canada, was announced as the new CEO of Gap, Inc.
New lead designers were also brought on board to help define a fashionable image. Patrick Robinson
Patrick Robinson (fashion designer)
Patrick Robinson is a California-born American fashion designer who has worked for such names as Giorgio Armani, Anne Klein, Perry Ellis, and Paco Rabanne. A graduate from the Parsons School of Design, Robinson has been a member of the Council of Fashion Designers since 1994 and was named one of...
for Gap Adult, Simon Kneen for Banana Republic, and Todd Oldham
Todd Oldham
Todd Oldham is an American-born designer and president of L-7 Designs Inc. His fun, lighthearted approach to fashion and style has become known to millions through his fashion lines, interior designs, books and by appearing in television shows...
for Old Navy.
Attempt to introduce a new logo
On October 6, 2010, Gap debuted a new logo in an attempt to create a more contemporary presence in the retail market. The new logo was made with HelveticaHelvetica
Helvetica is a widely used sans-serif typeface developed in 1957 by Swiss typeface designer Max Miedinger with Eduard Hoffmann.-Visual distinctive characteristics:Characteristics of this typeface are:lower case:square dot over the letter i....
typeface and did away with the blue box that had become iconic with the brand. There was a public outcry against the new logo, especially in the graphic design
Graphic design
Graphic design is a creative process – most often involving a client and a designer and usually completed in conjunction with producers of form – undertaken in order to convey a specific message to a targeted audience...
community. The company returned to its previous "blue box" logo on October 12, only a week after the new logo's debut. Marka Hansen, the executive who oversaw the logo change, resigned February 1, 2011.
Board of directors
- Howard P. Behar
- Adrian D. P. Bellamy (1995)
- Domenico De Sole
- Doris F. Fisher (1969)
- Robert J. FisherRobert J. FisherRobert J. Fisher has been a director of Gap Inc. since 1990; he was previously chairman of the board and interim chief executive officer. The son of Gap Inc. founders Donald Fisher and Doris F...
(1990), Chairman (2004) - Penelope L. Hughes
- Bob L. Martin
- Jorge P. Montoya
- James M. Schneider
- Mayo A. Shattuck IIIMayo A. Shattuck IIIMayo A. Shattuck III is a notable American businessman, and currently Chairman and CEO of Baltimore-based Constellation Energy.- Career :...
- Ken Pickart
Leadership
The current leadership is:- Chairman of the Board of Directors:
- Chief Executive Officer: Glenn K. Murphy
- President, Banana Republic Brand: Jack Calhoun
- President, Japan: John Ermatinger
- President, Gap Brand: Art Peck
- President, Gap, Inc. Direct: Toby Lenk
- President, Old Navy Brand: Tom Wyatt
- President, Europe: Stephen Sunnucks
- President, Gap, Inc. Outlet Art Peck
- Executive Vice President, Corporate Strategy and Business Development: Art Peck
- Executive Vice President and Chief Financial Officer: Sabrina Simmons
- Executive Vice President and Chief Information Officer Tom Keiser
- Executive Vice President, Human Resources and Corporate Communications: Eva Sage-Gavin
- Senior Vice President, Gap International Sourcing: Stan Raggio
- Senior Vice President & General Counsel: Michelle Banks
External links
- Gap
- Gap, Inc.
- Don Fisher - Daily Telegraph obituary