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Entries in Gap Inc. (3)

Friday
Oct142011

The Gap to Close 200 Stores in North America

Justin Sullivan/Getty Images(SAN FRANCISCO) -- Faced with declining sales, Gap. Inc announced Thursday that it would shutter about 20 percent of its clothing stores in North America by the end of 2013.

Currently, there are nearly 900 stores and within two years, only 700 Gaps will stay open.

The problem is that Gap's mid-priced clothes are being squeezed out by customers looking for items either on the high or low end of the scale.  Old Navy and Banana Republic, which are also owned by Gap Inc., are also seeing sales drop off but not as drastically.

Meanwhile, the Gap is looking East for some answers.  It plans to triple its stores in China from 15 to 45.

Copyright 2011 ABC News Radio

Wednesday
Jan122011

Study: Best Policy is to Ask First Before Changing Company Logo

Image Courtesy - Getty Images(UNIVERSITY PARK, Pa.) – When companies change their logo, it is most likely to upset customers that are most loyal to the brand, a study conducted at Penn State found. Researchers took a look at how consumers reacted to logo redesigns, and found that poor reaction to a change can lead to bad numbers for a business.

The study, called Do Logo Redesigns Help or Hurt Your Brand? The Role of Brand Commitment, surveyed 632 undergraduate students and had them look at a change in two famous logos on the market—Adidas and New Balance. Researchers had a professional graphic designer create two new logos for those companies, and found that those respondents who were highly loyal to the brand before the change did not like the new logos. However, individuals who were not originally loyal to the brand were receptive to the new designs.

The main finding of the study was that customers feel personal connections to brands, and that when logos change, they feel a sense of betrayal. Take for example, Gap. The company changed its iconic logo in October 2010, only to be bombarded with ridicule on Facebook and Twitter. Just days later, Gap reverted to the original logo.

 "Most companies presume that their most precious customers -- those having strong brand commitment -- will be more accommodating to changes," the study reads. "Our results show this is likely a mistaken assumption -- one that can alienate the core, the most committed of a brand's customers."  

The best way to tackle change, the researchers found, is to ask the most loyal customers first for input. If they feel like they have an inside track to what’s happening, they will be more likely to respond positively when a change does occur.

Copyright 2011 ABC News Radio

Monday
Oct112010

Gap Listens to Customers: Bring Back the Blue Box

Photo Courtesy - Getty Images(NEW YORK) -- Marka Hansen, president of Gap Brand North America, announced Monday that the popular clothing company would change its logo back to its iconic blue box just one week after introducing a new, modern logo on its website, gap.com.

After the new logo's reveal, Gap consumers spoke out against the change on blogs, message boards and the company's Facebook fan page.  Last Friday, Hansen responded to the complaints on The Huffington Post, explaining Gap, Inc.'s decision to update the logo after more than 20 years. 

"Our brand and our clothes are changing and rethinking our logo is part of aligning with that," she wrote.  Hansen later added, "We chose this design as it's more contemporary and current.  It honors our heritage through the blue box while taking it forward."

However, after allowing fans to share their feedback about the change on Gap's Facebook page, Hansen announced the new logo's recall.

"Last week we moved to address the feedback and began exploring how we could tap into all the the passion.  Ultimately, we've learned just how much energy there is around our brand.  All roads are leading us back to the blue box, so we've made the decision not to use the new logo on gap.com any further," Hansen said in a statement.

Gap, Inc. plans to bring the classic logo back across all channels.

Copyright 2010 ABC News Radio







ABC News Radio