Gap Inc. to bow new retail concept in 2nd half of 2005: chain aims for older misses

DSN Retailing Today, Oct 11, 2004

SAN FRANCISCO -- Though many details surrounding Gap Inc.'s new retail concept are still under wraps, including the name of the chain slated to open its doors in the second half of 2005, one point is clear: the company wants to specifically target age 35-plus female customers. While current Gap model and former "Sex in the City" actress Sarah Jessica Parker, falls within this age range, the company apparently feels the need to even more aggressively chase this important consumer.

There are a few likely reasons for this recent announcement. For one, Gap Inc.'s retail store brands are all fairly mature in terms of expansion, including Old Navy, Banana Republic and its various Gap divisions. Like Abercrombie & Fitch, which recently introduced its own new retail concept, Ruehl, creating a new brand is a way to attract attention and increase business.

Another reason is that other specialists have recently opened chains to target Gen X customers, including Ruehl, to fill a void in the market. However, the market has become very crowded during the past year. Already, one of these concepts, Pazo, has been abandoned by parent company Chico's. The retailer quickly aborted its attempt to target younger customers than its core 45-plus market.

As previously reported, there has been an exceptional amount of competition from broad-line retailers. Now, busy professionals and mothers have the option of buying work-appropriate apparel and casual wear under Isaac Mizrahi at Target or George at Wal-Mart, convenient one-stop shopping as they pick up groceries, hardlines or general merchandise. Time-pressed customers need strong incentive to make destination visits to stores where they can "just" purchase clothing. Gap Inc. hopes its new chain will provide this interest, with what president and ceo Paul Pressler describes as an "exceptional store environment."

Though the assortment will be 100% women's, the pricing structure is, as of now, unclear. Gap Inc. did announce that Gap brand president Gary Muto will be heading up the launch of the new chain, reporting to Pressler. As many as 10 stores will open in 2005, but a Gap spokeswoman noted that other details will be revealed closer to the launch date.

Considering the competitive market, this is no surprise. However, unlike Chico's and like Abercrombie & Fitch, Gap Inc. has a history of successfully launching and managing multiple retail brands, leading to great expectations for whatever the company has in store.