Gap consolidates e-commerce sites — what took so long?
Posted by: admin in Marketing and AdvertisingFiled under: Consumer experience, Marketing and advertising, Gap Inc (GPS)
In a move designed to make it easier and more appealing for consumers to shop at its websites, Gap (NYSE: GPS) is consolidating operations to allow for the purchase of clothing from Gap, Banana Republic, Old Navy and Piperlime using one shopping cart, paying one shipping fee.
The Wall Street Journal reports that “By integrating the sites, the San Francisco-based company hopes to encourage shoppers to purchase products from more than one of its brands. Gap states about a third of its online orders are put by customers who shopped at more than one of its Web sites in the past year.”
Since this seems like an obvious way to spur sales growth, you’ve to wonder what took so long. One concern might be that keeping the sites separate kept the brands more distinct in the eyes of the consumer. Will having expensive Banana Republic merchandise in the same shopping cart as the more budget-oriented Old Navy detract from the value of that brand? It’s possible. It may be why a more successful retailer like Abercrombie & Fitch (NYSE: ANF) has chosen to keep Hollister and its namesake brand entirely separate.
But with recent cost cuts aimed at improving profitability, Gap’s recently-anointed CEO Glenn Murphy appears focused on improving performance now rather than building brands. With its shares trading at about half of where they were a decade ago, shareholders are probably ready for that.
Entries (RSS)