According to this article at MSNBC, The Gap Inc. (GPS) is "fighting to come back into fashion". When I think of Gap I think "basic". But with the rise of retailers such as Target that carry basics at lower prices, well, yes, there is going to be trouble. The article states:
"Gap's problems are numerous. Traffic at stores is way down. People who do enter Gap stores are not buying full-priced merchandise, if they are buying at all. June sales declined 1 percent overall, and same-store sales, an important industry measure of stores open over one year, dropped 6 percent. Indeed, for the past 25 months, same-store sales declined or were flat all but two months. In February and March of this year, they were down 11 percent and 13 percent, respectively."
The company is going through a big makeover and it will be interesting to see what the future unfolds!
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