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Gap re-lays TV commercials to open stores in China in 2010
Gap, the American apparel retailer, is looking to reinvigorate its global presence by entering the Chinese market for the first time next year. This move comes as the company seeks to offset declining sales of its core brands in the U.S. and other key markets. At a recent investor seminar, Gap announced that it will resume TV advertising starting next month, ending a two-year hiatus.
The brand's return to television is part of a broader strategy to revitalize its image and regain consumer interest. Gap operates several well-known chains, including Old Navy, Banana Republic, and Athletea, along with online businesses like Piper Lime. Over the past two years, the company has focused on cost-cutting and streamlining operations to improve profitability.
Despite these efforts, the impact on overall revenue has been limited. The U.S. economic slowdown has hit Old Navy and Gap particularly hard, while Banana Republic’s high-end offerings have also struggled. However, there are signs of hope—Old Navy’s same-store sales rose 13% in September, a significant improvement from a 24% drop the previous year.
CEO Glenn Murphy emphasized that Old Navy’s performance shows the effectiveness of their strategies, including product stability, active marketing, and optimized store environments. He also highlighted plans to invest more in expanding globally and regaining market share.
In 2010, Gap will launch online sales in Canada and the UK, while expanding its discount stores internationally. By year-end, 50 Old Navy stores will adopt a new, smaller convenience model. Additionally, Banana Republic will introduce more casual wear alongside its traditional business attire.
Some analysts remain skeptical about Gap’s marketing campaigns, but the company is pushing forward with new initiatives, including expanded lines of khakis and trousers. In November, Gap will restart its TV advertising, focusing on family-friendly styles that evoke nostalgia for the brand’s classic image.
Founded in San Francisco in 1969, Gap has long been a staple in the casual wear market. As it moves into new regions and refines its product lines, the company aims to rebuild its reputation and strengthen its position in an increasingly competitive retail landscape.