ing of its Gap brand women's apparel collection a top priority www gapinc com/ public/; 2007, Milestones, Gap Inc , www gapinc com/public/About/ abt_milestones shtml, 2010 Key Dates specialty retailer offering clothing, accessories, and Place founded: San Francisco
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[PDF] History Gap, Inc - Cengage
ing of its Gap brand women's apparel collection a top priority www gapinc com/ public/; 2007, Milestones, Gap Inc , www gapinc com/public/About/ abt_milestones shtml, 2010 Key Dates specialty retailer offering clothing, accessories, and
Place founded: San Francisco
[PDF] Gap, Inc
Today, the Gap is one of the world's largest specialty retailers with three of the most recognized brands in the apparel industry — Gap, Banana Republic and Old Navy Gap Inc has more than 150,000 employees supporting about 3,000 stores in the United States, United Kingdom, Canada, France and Japan
[PDF] Gap Inc 2019 Annual Report - Annual Reports
17 mar 2020 · Gap Inc is a leading global apparel retail company We offer apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands
[PDF] Gap, Inc
3 avr 2012 · Revitalize the Gap Brand and Improve Design: Gap has suffered through an decided it had to develop its own image and line of clothing Still, Gap does not need to be worried about its Quick Ratio, as the company
[PDF] Gap Inc 2015-16 Global Sustainability Report - Gap Sustainability
From that single store to today's global business, Gap Inc is synonymous with equality, And it's not just about the clothes we make, it's about our impact on
[PDF] GLOBAL SUSTAINABILITY REPORT 2017 - Gap Sustainability
progress toward our corporate and brand private label merchandise from about 800 vendors their clothes accounts for a portion of our products' total
[PDF] APPLICATION OF BRAND CONCEPT MAPS TO GAP INC - GETD
Involvement, Brand Association Category, Gap, Banana Republic, Old Navy Accordingly, if consumers think the fashion clothing products are important Brand image is defined here as perceptions about a brand as reflected by the brand
[PDF] THE GAP, INC
21 mar 2016 · Gap Inc has Company-operated stores in the United States, Canada, the Banana Republic offers clothing, eyewear, jewelry, shoes, handbags, and Certain financial information about international operations is set forth
[PDF] Brand Audit for The Gap Clothing - Fordham Hockey
16 déc 2004 · The Gap Clothing Brand Equity Identifying Sources of Brand Equity • Conducted both Gap is about khakis, jeans, ribbed sweaters
[PDF] BRAND IDENTITY: WHAT WENT WRONG
However, the literature about what causes a brand to lose its identity is rarely tackled An information gap regarding this topic Market share of clothing
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GAP, INC. !GRIFFIN CONSULTING GROUP !Paul Ciasullo Jason Blauvelt James Lambert Wednesday, April 03, 2012 !
!!"!! CONTENTS #$%&'()*%!+',,-./!000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!1!23,4-5/!6*%.*)%7!00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!8!9':)5%::!;3<%=!0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!8!+'>:)<)-.)%:!0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!?!@):(3./!0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!A!B)5-5&)-=!C5-=/:):!0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!DE!6*%.*)%7!000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!DE!+-=%:!-5:()('(%:!O!23,4=%,%5(:!0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!G1!+Q6R!C5-=/:):!00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!G8!+(.%5F(H:!0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!G8!Q%-K5%::%:!00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!G?!6443.('5)()%:!0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000!GA!
!!1!!EXECUTIVE SUMMARY U-4Y!M5&0!ZUP+[!):!-5!-44-.%=!.%(-)=%.!&35:):()5F!3W!W)*%!>.-5<:\!U-4Y!9-5-5-!N%4'>=)&Y!6=='%!_%-5:D0U-4!%5(%.%'.F%35)5F!)5(%.5-()35-=!%,4).%!-5.-53'FH(!U-4!4.3<'&(:!)5!(H%!5)5%()%:!F.%7!3'(!3W!U-4Y!-5=%!(3!.%4=)&-(%!)(:!:'&&%::!7)(H!(H%!5%7!F%5%.-()35G0!RH%!&3,4-5/!7-:!:(.'&K!-53(H%.!>=37!<'.)5F!(H%!N%&%::)35!3W!"EES0!RH%!N%&%::)35!:(.'&K!-44-.%=!W).,:!)5!4-.()&'=-.Y!7)(H!&35:',%.!<):&.%()35-./!)5&3,%!4=',,%()5F0!B.3,!"EEL`"EDEY!?EEE!.%(-)=!:(3.%:!&=3:%)==)35!)(!%-.5%)=)(/!(3!.%4=)&-(%!(H%!:'&&%::W'=!>.-5<)5F!-5'.F%35)5F!3443.('5)()%:!)5!%`&3,,%.&%!-5':)5%::0!Q%!.%&3,,%5.-5.-5<% !!8!!• 1/8."&5")90#".%$5$/6)&/0):*$;%)<38=5)>?)@=5%32".)-&5"7)U-4!H-:!<%&.%-:%%((%.!:(.'&('.%!)(:!,-.K%()5F!4=-5:!(37-.<:!)(:!&3,4-5)%:^!)5<)*)<'-=!&35:',%.!>-:%:0!!• @3/%$/=")%3)43A/5$(")$/)%*")BC:)&/0)DE,&/0)1/%"./&%$3/&''?\!U-4!:H3'=3'5)=%!4.%:%5&%0!;3:(!),43.(-5(!W3.!U-4!):!(3!F.37!)(:!%`&3,,%.&%!>':)5%::!)5(%.5-()35-==/Y!7H%.%!%$4-5:)35!H-:!>%%5!W3&':%.)&K!-5.-5<)5F!):!-!&.)()&-=!&3,435%5(!3W!(H):!4=-50!COMPANY OVERVIEW BUSINESS MODEL U-4!):!-!F=3>-=!:4%&)-=(/!.%(-)=%.Y!7H)&H!3WW%.:!-44-.%=Y!-&&%::3.)%:Y!-5->)%:0!M(:!>.-5<:!)5&='<%!U-4Y!6==)&Y!P)4%.=),%!-5/!(H).':)5%::0!U-4!W.-5&H):%:!:%==!U-4!<%:)F5%=)&!:(3.%:!)5!,-5/!3(H%.!&3'5(.)%:!-.3'5 !!?!!SUBSIDIARIES Gap U-4^:!5-,%:-K%!>.-53(H!,%5!-5=):H%->/U-40!M5!DSSAY!U-4!%5(%.%->/U-4Y!-5=)&!4.3<'&(:!-.%!:3==)&!)5!DSLG0!9-5-5-!N%4'>=)&!3WW%.:!:34H):()&-(% !!A!!73,%5!-5'/!4.3<'&(:!W.3,!4)4%.=),%0&3,0!!Athleta U-4!-&J').%%.!"EEL0!C(H=%(-!3WW%.:!&':(3,%.:!H)FH!J'-=)(/!-53-.<)5FY!(%55):Y!-5'/!4.3<'&(:!35!(H%!M5(%.5%(!W.3,!-(H=%(-0&3,?0!HISTORY RH%!U-4^:!H):(3./!):!=%F%5<-./!)5!(H%!.%(-)=!)5<':(./0!B.3,!H',>=%!>%F)55)5F:!-:!-!:,-==!+-5!B.-5&):&3!:H34!(H-(!:3==%!:(/=%!5%%<:!>%=37!='$'./0!@37%*%.Y!)5!(H%!=-:(!<%&-<%!(H%!&3,4-5/!H-:!W-&%' !!DE!!34%5)5F!(H%).!<33.:!-(!(H%!.-(%!3W!35%!4%.!<-/!j!(H%!&3,4-5/!H-/!"1EEE!4%.&%5(!:)5&%!DSL1DG0!@37%*%.Y!>/!(H%!('.5!3W!(H%!&%5('./Y!RH%!U-4!>%F-5!(3!<%&=)5%!-:!-!7H3=%!-:!.%*%5'%!F.37(H!:=)5K%%&3,%!2#6!3W!i0!2.%7!U.3'4!M5&0!:H3.(=/!(H%.%-W(%.0!N%*!B):H%.!:%=%&(%.3'FH(!4.3W)(:!W.3,!.%=-&KY!>'(!(H%!&=3(H)5F!,-.K%(!H-%&3,%!)5(%5:%=/!&3,4%()()*%!-5%!43::)>=%!W3.!-!&3,4-5/!(H-(!H-)==)35!-5)==)35!)5!"EES0!RH%!&3,4-5/!F.%7!.%*%5'%!W3.!(H%!W).:(!(),%!)5!W)*%!/%-.:!)5!"EDE!(3!bD10??1!>)==)35!35=/!(3!35&%!-F-)5!H-*%!)(!W-==!(3!bD1081S!>)==)35!)5!"EDD0!RH%!W)*%!/%-.!4%.&%5(!.%*%5'%!&H-5F%!7-:!`D0LDc!)5!/%-.!%5<)5F!"EDD0!+-=%:!H-*%!%.3<%' !!DD!!P33.!:-=%:!)5!]3.(H!C,%.)&-!<.-FF%':)%:(!:H344)5F!:%-:35!3W!(H%!/%-.DA0!B3'.(H!J'-.(%.!5%(!:-=%:!7%.%!b10G!>)==)35!&3,4-.%)==)35!)5!(H%!W3'.(H!J'-.(%.!3W!"EDE0!R3(-=!.%*%5'%:!)5!"EDD!7%.%!bD1081S!7%==!>%=37!U-4^:!"EE1!H)FH!3W!!bD?0"?A!>)==)35DL0!M5!&35(.-:(Y!(H%!-44-.%=!:%&(3.!-:!-!7H3=%!7-:!'4!W3.!(H%!W3'.(H!J'-.(%.!/%-.!3*%.!/%-.!-:!U-4!.)*-=:Y!)5&='<)5F!RH%!Rik!23,4-5)%:!-5.3'FH(!)5!:H344%.:!7)(H!-FF.%::)*%!4.3,3()35-=!-&()*)()%:!<'.)5F!(H%!"EDD!H3=)<-/!:%-:35DS0!B3.!(H%!)5<':(./!-:!-!7H3=%Y!-44-.%=!:-=%:!F.%7!101c!)5!V%&%,>%.!-5-5K.'4(!)5&='<)5F!U33%.!3W!/%-.:Y!5%(!)5&3,%!:)F5)W)&-5(=/!)5&.%-:%.3'FH(!U-4^:!5%(!)5&3,%!(3!)(:!H)FH%:(!=%*%=:!)5!-!<%&-<%!-(!bD0"!>)==)350!V)='(%)=)(/!(3!F.37!5%(!)5&3,%!7H)=%!=3:)5F!.%*%5'%:!H-%%5!-!.%:'=(!3W!U-4^:!)5&.%-:%!)5!35=)5%!.%*%5'%:!-5%.!3W!<3,%:()&!>.)&K!-5%&-':%!(H%.%!-.%!53!.%-=!%:(-(%!&3:(:!-53.!&3:(:0!M5!"EDD!U-4!<%(-)=% !!D"!!3W!U-4!:(3.%:!>/!(H%!%5)=)(/!!!!!!!!!!!R-$!N-(%!c!GL0G1!GL0S8!GS0G"!GS0"8!GS0D8!]%(!;-.F)5!c!80"L!?0??!A0A?!L0"D!80AG!C::%(!R'.53*%.!ZC*%.-F%[!D0S"!D0LS!D0LG!D0S8!"0ED!N%('.5!35!C::%(:!c!DE0DA!D"08?!D10DA!D?!DD08!B)5-5&)-=!I%*%.-F%!ZC*%.-F%[!D0LG!D0A"!D0?G!D0AG!"0?S!N%('.5!35!#J')(/!c!DA0?G!""0GG!"G0A?!"?0L1!"10GA!N%('.5!35!M5*%:(% !!DG!!CHART 3: GAP STORE LOCATIONS Quarter Ended January 28,2012 Store Locations Beginning of Q4 Store Locations Opened Store Locations Closed Store Locations End of Q4 Square Feet (millions) U-4!]3.(H!C,%.)&-!DEL?!A!8E!DE1G!DE0A!U-4!#'.34%!DSD!"!`!DSG!D0A!U-4!C:)-!D1D!DD!`!D8"!D08!6==)&!]3.(H!C,%.)&-!8LG!G!8!8LD!10S!9-5-5-!N%4'>=)&!C:)-!"S!"!`!GD!E0"!9-5-5-!N%4'>=)&!#'.34%!S!D!`!DE!E0D!C(H=%(-!]3.(H!C,%.)&-!1!?!`!DE!`!23,4-5/`34%.-(% !!D1!!CHART 5: GAP SALES BY BRAND 2011 Sales USD Millions % of total 6==)&!"8LG!DL!6(H%.!11D!G!R3(-=!D1??1!DEE!+3'.&%\!N%(-)=!+-=%:!CHART 6: NUMBER OF GAP STORES 2011 Stores No. U-4!]C!DDDD!6==)&!]C!8A?!U-4!#'.34%!DL1!U-4!C:)-!DG8!9-5-5-!N%4'>=)&!C:)-!"S!9-5-5-!N%4'>=)&!C:)-!8!C(H=%(-!]C!D!B.-5&H):%!DAL!R3(-=!G"1?!+3'.&%\!N%(-)=!+-=%:!M5!"EDDY!(H%!,-_3.)(/!3W!RH%!U-4^:!.%*%5'%!&-,%!W.3,!(H%!X5)(%%W3.%0!9-5-5-!N%4'>=)&!]C!7-:!W=-(!*%.:':!43:)()*%!"c!(H%!/%-.!>%W3.%0!6=%W3.%0!M5(%.5-()35-==/!.%*%5'%:!7%.%!<375!`Lc!*%.:':!43:)()*%!Dc!W.3,!(H%!/%-.!>%W3.%0!!U=3>-==/Y!6=)FF%:(!4%.&%5(-F%!3W!U-4Y!M5&0^:!:-=%:!7)(H!1Ec!3W!.%*%5'%:0!U-4!7-:!:=)FH(=/!>%H)5/!9-5-5-!N%4'>=)&!7)(H!DLc!3W!.%*%5'%:0!R3F%(H%.!(H%!(H.%%!>.-5<:!&3,4.):% !!D8!!2H-.(!A\!M5(%.5-()35-=!N%*%5'%!Fiscal Year February- January 2008-01 2009-01 2010-01 2011-01 2012-01 N%*%5'%!M5(%.5-()35-=!+(3.%:!ZX+V!DEEE:[!bDY8"1YEEE!!bDY8LEYEEE!!bDY8LAYEEE!!bDYA"SYEEE!!bDYL8GYEEE!!g3g!c!2H-5F%!?0GEc!G0AEc!E01Ec!L0SEc!A0"Ec!+-,%`+(3.%!+-=%:!2H-5F%!`D0EEc!`10EEc!`10EEc!D0EEc!`S0EEc!+3'.&%\!N%(-)=!+-=%:!CHART 8: E-COMMERCE REVENUE 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 N%*%5'%!#`23,,%.&%!ZX+V!DEEE:[!bSEGYEEE!!bDYEGEYEEE!!bDYDDLYEEE!!bDY"SSYEEE!!bDY8?EYEEE!!g3g!c!2HF!"G0AEc!D10DEc!L08Ec!D?0"Ec!"E0DEc!-:!c!3W!]%(!+-=%:!80AEc!A0DEc!A0SEc!L0SEc!DE0AEc!B.-5&H):%!O!QH3=%:-=%!ZX+V!DEEE:[!bSDYEEE!!bD1LYEEE!!bD1DYEEE!!bDS8YEEE!!b"LGYEEE!!g3g!c!2HF!DL101Ec!?"0?Ec!`10AEc!GL0GEc!180DEc!+3'.&%\!N%(-)=!+-=%:!QH)=%!:-,%!:(3.%!:-=%:!7%.%!<375!Sc!)5(%.5-()35-==/Y!.%*%5'%!-:!-!7H3=%!F.%7!<'%!(3!-!:'>:(-5()-=!)5&.%-:%!)5!(H%!J'-5()(/!3W!:(3.%:0!RH):!):!=-.F%=/!.%W=%&(%)FF%:(!:'&&%::!)5!"EDD!&-5!>%!:%%5!)5!)(:!%`&3,,%.&%!.%*%5'%:Y!7H)&H!7%.%!'4!3*%.!"Ec"10!BALANCE SHEET LIQUIDITY AND SOLVENCY CHART 9: CURRENT AND QUICK RATIOS Year 2011 2'..%5(!N-()3!"0E"8!f')&K!N-()3!0?!!!!!!!!+3'.&%\!U33F=%!B)5-5&%!RH%!2'..%5(!N-()3!):!-!,%-:'.%!3W!&'..%5(!-::%(:!(3!&'..%5(!=)->)=)()%:0!QH%5!-!W).,!H-:!2'..%5(!N-()3!F.%-(%.!(H-5!35%Y!-!&3,4-5/!):!&35:)<%.%=%!:%&'.)()%:!3*%.!&'..%5(!=)->)=)()%:!-5 !!D?!!)<%-==/!F.%-(%.!(H-5!35%0!RH%!U-4^:!2'..%5(!N-()3!3W!"0E"8!)5<)&-(%:!(H-(!U-4!):!*%./!=)J'))=)(/!(H-(!)5!(H%!%*%5(!3W!=)J')<-()35!)(!73'=%!<)WW)&'=(!W3.!U-4!(3!('.5!3*%.!)(:!)5*%5(3./0!+()==Y!U-4!<3%:!53(!5%%%!73..)%3'(!)(:!f')&K!N-()3Y!-:!(H%!&3,4-5/!:()==!H-:!-!:)F5)W)&-5(!-5)=)()%:!H-*%!.%,-)5%%&-':%!U-4!H-:!53(!(-K%5!35!-!:)F5)W)&-5(!J'-5()(/!3W!5%7!<%>(0!B'.(H%.,3.%Y!U-4!H-:!&35()5'%(!-(!&'..%5(!=%*%=:!-5=%:!!!!!!!"E8!"SA!M5*%5(3.)%:!D8A8!D8E?!D1AA!D?"E!D?D8!V%W%..% !!DL!!STOCK ANALYSIS CHART 11: STOCK PERFORMANCE !+3'.&%\!g-H33!B)5-5&%!CHART 12: VALUATION MEASURES Valuation Measures Amount ;-.K%(!2-4!D"0GD9!#5(%.4.):%!m-='%!D"08"9!R.-)=)5F!Pl#!D?0DA!B3.7-. !!DS!!CHART 13: TOTAL RETURN ANALYSIS Date 1/28/06 2/3/07 2/2/08 1/31/09 1/30/10 1/29/11 RH%!U-4Y!M5&!"#$$%$$!"##&%'(!"##)%#*!"(+%(*!"##+%&(!"#*#%,*!+OP!8EE!"#$$%$$!"##,%)#!"###%+-!"(+%((!"'#%,#!"###%('!V37!i35%:!X0+0!C44-.%=!N%(-)=%.:!bDEE0EE!bDDA018!bS"0A"!b1S0?8!bS10EG!bDD?0?1!+3'.&%\!N%:%-.&H!V-(-!U.3'4Y!M5&0!"?!CHART 14: PRICE TARGET SUMMARY Price Target Summary Mean Target 27.55 Median Target 28.00 High Target 37.00 Low Target 18.00 No. of Brokers 22.00 !!!!!!!!+3'.&%\!g-H33!B)5-5&%!CHART 15: RECOMMENDATION TRENDS Recommendation Trends Time Period Current Month Last Month Two Months Ago Three Months Ago +(.35F!9'/!G!G!G!G!9'/!G!G!"!"!@3=3'5&%!(H':!W-.!)5!"ED"!7)(H!(H%!:(3&K!'4!G?c!W3.!(H%!/%-.!Z1lDEl"ED"[0!V%:4)(%!-!433.!W3'.(H!J'-.(%.!%-.5)5F:!.%43.(Y!U-4!>%-(!)5<':(./!%:(),-(%:!H%=4)5F!(H%!:(3&K"A0!C5-=/:(:^!4.)&%!(-.F%(!%:(),-(%:!-5%%5!35!(H%!.):%!-:!:(.35F!:-=%:!(H':!W-.!)5!"ED"!H-*%!-5-=/:(:!>%=)%*)5F!U-4!):!35!(H%!.)FH(!(.-&K!)5!.%F-.<:!(3!)(:!W-:H)35!-5.-5.'-./!"ED"!(H-(!)(!73'='/!>-&K!,)==)35:!3W!:H-.%:!7H)=%!-=:3!.-):)5F!)(:!<)*)<%5<"S0! !!"E!!U-4!:%%,:!(3!>%!4.)&%!.%=-()*%=/!&H%-4=/!-:!-!:(3&K!7)(H!:H-.%:!(.-<)5F!-(!DG0?!$!D"!,35(H!W3.7-.%=37!(H%!)5<':(./!=%*%=!3W!0S!-5%H)5%)5F!*-='%3*%!(H):!-(!b"A0880!RH%!&35:%5:':!34)5)35!:%%,:!(3!>%!5%'(.-=!35!U-4!7)(H!"E!3'(!3W!GD!-5-=/:(:!W-*3.)5F!-!H3=)==)35GD0!N%(-)=!:(3&K:!H-*%!4%.W3.,%%:(!3'(!3W!"G!)5<':(./!)5<%$%:0!m).('-==/!%*%./!-44-.%=!:(3.%!):!H-*)5F!-!7)55)5F!/%-.0!B%>.'-./!.%(-)=!:-=%:!7%.%!>.3-<=/!43:)()*%Y!-5%!F%(()5F!:(.35F%.G"0!RH%!1c!)5&.%-:%!)5!&35:',%.!4.)&)5FY!%*)<%5(!)5!2H-.(!D?Y!W'.(H%.!)==':(.-(%:!(H):!43)5(0!CHART 16: CHANGE IN CONSUMER PRICES +3'.&%\!9'.%-'!3W!I->3.!+(-():()&:GG! !!"D!!Revenue and Growth 2H-.(!DA!:H37:!U-4!M5&0^:!.%*%5'%!.%=-()*%!(3!%-&H!3W!)(:!&3,4%()(3.:!)5!(H%!)5<':(./0!U-4Y!M5&0^:!-*%.-F%!.%*%5'%!3*%.!(H%!4-:(!W)*%!/%-.:!):!bD10A1!>)==)35Y!,-K)5F!)(!(H%!=-.F%:(!4'.%!-44-.%=!W).,!)5!(H%!&3'5(./0!@37%*%.!(H%.%!-.%!-!5',>%.!3W!<%4-.(,%5(!:(3.%:!)5&='<)5F!Q-=,-.(Y!R-.F%(Y!;-&/^:Y!RH%!Rik!23,4-5)%:Y!i020!P%55/^:Y!-5%/35-F:Y!H3,%!W'.5):H)5F:Y!_%7%=./Y!W33 !!"G!!Chart 17: Gap, Inc. Revenues Against Competitors Revenue USD Millions (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Average Q-=,-.(!bGALYASS!b1E8Y?EA!b1ELY"D1!b1"DYL1S!b11?YS8E!b1D"Y"L1!R-.F%(!b?GYG?A!b?1YS1L!b?8YG8A!b?AYGSE!b?SYL?8!b??YDL8!;-&/n:!!b"?YGDG!b"1YLS"!b"GY1LS!b"8YEEG!b"?Y1E8!b"8Y""E!RH%!Rik!23,4-5)%:!bDLY?1A!bDSYEEE!b"EY"LL!b"DYS1"!b"GYDSD!b"EY?D1!i020!P%55%/!23,4-5/!bDSYL?E!bDLY1L?!bDAY88?!bDAYA8S!bDAY"?E!bDLYDL1!h3H=^:!bD?Y1A1!bD?YGLS!bDAYDAL!bDLYGSD!bDLYLE1!bDAY11A!U-4!bD8YA?G!bD1Y8"?!bD1YDSA!bD1Y??1!bD1Y81S!bD1YA1E!]3.<:(.3,!bLYL"L!bLY8AG!bLY?"A!bSYAEE!bDEYLAA!bSYG"D!N-=4H!I-'.%5!23.4!b1Y"S8!b1YLLE!b8YEDS!b1YSAS!b8Y??E!b1YS?A!Pm@!23.4!b"Y1"8!b"Y1S"!b"YGSS!b1Y?GA!b8YLSD!bGY8?S!C>%.&.3,>)%!O!B)(&H!bGYA8E!bGY81E!b"YS"S!bGY1?S!b1YD8L!bGY8?S!C,%.)&-5!#-F=%!6'(W)((%.:!bGYE88!b"YSLS!b"YSSD!b"YS?L!bGYD?E!bGYEGG!C55Y!M5&!b"YGSA!b"YDS8!bDYL"S!bDYSLE!b"Y"D"!b"YD"G!C%.343:(-=%!bDY1DG!bDY8SD!bDYLL?!b"Y"GE!b"Y1EE!bDYSE1!2H)&3n:!bDYAD1!bDY8L"!bDYADG!bDYSE8!b"YDS?!bDYL""!X.>-5!6'(W)((%.:!!bDY""8!bDY8EL!bDYLG8!bDYSGL!b"Y"A1!bDYA8?!C,%.)&-5!C44-.%=!b818!b88S!b8GG!b81A!b88S!b81S!+3'.&%\!;3.5)5F!+(-.!Chart 18 Gap, NA Revenues Against Competitors Revenue USD Millions (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Average ;-&/n:!!b"?YGDG!b"1YLS"!b"GY1LS!b"8YEEG!b"?Y1E8!b"8Y""E!i020!P%55%/!23,4-5/!bDSYL?E!bDLY1L?!bDAY88?!bDAYA8S!bDAY"?E!bDLYDL1!U-4!]C!b1Y8DE!b1YD?S!bGYL"E!bGYAS8!bGY8?1!bGYSA"!C,%.)&-5!#-F=%!6'(W)((%.:!bGYE88!b"YSLS!b"YSSD!b"YS?L!bGYD?E!bGYEGG!C%.343:(-=%!bDY1DG!bDY8SD!bDYLL?!b"Y"GE!b"Y1EE!bDYSE1!2H)&3n:!bDYAD1!bDY8L"!bDYADG!bDYSE8!b"YDS?!bDYL""!C,%.)&-5!C44-.%=!b818!b88S!b8GG!b81A!b88S!b81S!+3'.&%\!;3.5)5F!+(-.! !!"1!!Chart 19: Banana Republic NA Revenues Against Competitors Revenue USD Millions (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Average ]3.<:(.3,!bLYL"L!bLY8AG!bLY?"A!bSYAEE!bDEYLAA!bSYG"D!N-=4H!I-'.%5!23.4!b1Y"S8!b1YLLE!b8YEDS!b1YSAS!b8Y??E!b1YS?A!Pm@!23.4!b"Y1"8!b"Y1S"!b"YGSS!b1Y?GA!b8YLSD!bGY8?S!C>%.&.3,>)%!O!B)(&H!bGYA8E!bGY81E!b"YS"S!bGY1?S!b1YD8L!bGY8?S!9-5-5-!N%4'>=)&!]C!b"Y1SL!b"YG?A!b"YDS?!b"Y"A1!b"Y"8G!b"YGDL!C55Y!M5&!b"YGSA!b"YDS8!bDYL"S!bDYSLE!b"Y"D"!b"YD"G!X.>-5!6'(W)((%.:!!bDY""8!bDY8EL!bDYLG8!bDYSGL!b"Y"A1!bDYA8?!+3'.&%\!;3.5)5F!+(-.!Chart 20: Old Navy, NA Revenues Against Competitors Revenue USD Millions (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Average Q-=,-.(!bGALYASS!b1E8Y?EA!b1ELY"D1!b1"DYL1S!b11?YS8E!b1D"Y"L1!R-.F%(!b?GYG?A!b?1YS1L!b?8YG8A!b?AYGSE!b?SYL?8!b??YDL8!RH%!Rik!23,4-5)%:!bDLY?1A!bDSYEEE!b"EY"LL!b"DYS1"!b"GYDSD!b"EY?D1!h3H=^:!bD?Y1A1!bD?YGLS!bDAYDAL!bDLYGSD!bDLYLE1!bDAY11A!N3::!+(3.%:!b8YSA8!b?Y1L?!bAYDL1!bAYL??!bLY?EL!bAY""1!6= !!"8!!Chart 21: Gap, Inc. Revenue Growth Against Competitors Revenue Growth % (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Avg. Growth Q-=,-.(!L0?1!?0L1!E0S"!G0GA!80S8!80D11!R-.F%(!?08"!"08!E0?G!G0DD!G0?A!G0"L?!;-&/n:!!`"011!`801!`80?1!?018!80?D!`E0"L1!RH%!Rik!23,4-5)%:!A0"D!G0?D!?0AL!L0D8!80?S!?0"LL!i020!P%55%/!23,4-5/!`E0""!`?0S"!`80EG!D0D?!`"0LD!`"0A?1!h3H=^:!80?"!`E08"!10LD!A0E?!"0"8!G0L11!U-4!`D!`A0L8!`"0"?!G0"S!`E0AL!`D0A"!]3.<:(.3,!G0D"!`"0LS!E0?G!D"011!D"0DG!80EL?!N-=4H!I-'.%5!23.4!D10??!DG0?D!"0L1!`E0L!DG0?S!L0L!Pm@!23.4!D?!"0A8!`G0A1!SG0G!"A0E1!"A0EA!C>%.&.3,>)%!O!B)(&H!DG0ED!`A0ES!`D80S1!DL011!DS0LA!80?8L!C,%.)&-5!#-F=%!6'(W)((%.:!S0G1!`"0DL!`D0?G!E0SG!?01L!"08LL!C55Y!M5&!"0"S!`L01G!`D?0?L!L0"S!DD0AG!`E08?!C%.343:(-=%!D"08A!DL08"!DL0"A!A0?1!`D0E1!DD0DS"!2H)&3n:!101A!`A0A!L0"?!DD0"!D80G!?0GE?!X.>-5!6'(W)((%.:!!D"0D1!"G0DD!"D0?L!80?G!DA0G8!D80SL"!C,%.)&-5!C44-.%=!G80L"!1E0L"!"08"!`10?D!"0?S!D8011L!+3'.&%\!;3.5)5F!+(-.!Chart 22: Gap, NA. Revenue Growth Against Competitors Revenue Growth % (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Avg. Growth ./0123!!4*%,,!4)%,!4)%(,!(%,)!)%(#!4$%*+,!5%6%!789981!6:;?!4-%,!4-%(!4+%,!4$%-!4(%#!4(%$,!?;8@A0/9!B/CD8!EFGHAGG8@3!'%&,!4*%#+!4#%(&!$%'&!(%,+!*%)++!?8@:<:3G/D8!#*%)-!#+%)*!#+%*-!-%(,!4#%$,!##%#'*!6IA0:23!,%,-!4-%-!+%*(!##%*!#)%&!(%&$(!?;8@A0/9!?< !!"?!!Chart 23: Banana Republic, NA. Revenue Growth Against Competitors Revenue Growth % (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Avg. Growth ]3.<:(.3,!G0D"!`"0LS!E0?G!D"011!D"0DG!80EL?!N-=4H!I-'.%5!23.4!D10??!DG0?D!"0L1!`E0L!DG0?S!L0L!Pm@!23.4!D?!"0A8!`G0A1!SG0G!"A0E1!"A0EA!C>%.&.3,>)%!O!B)(&H!DG0ED!`A0ES!`D80S1!DL011!DS0LA!80?8L!9-5-5-!N%4'>=)&!]C!801!`80"!`A0"!G0?!`E0S!`E0L?!C55Y!M5&!"0"S!`L01G!`D?0?L!L0"S!DD0AG!`E08?!X.>-5!6'(W)((%.:!!D"0D1!"G0DD!"D0?L!80?G!DA0G8!D80SL"!+3'.&%\!;3.5)5F!+(-.!Chart 24: Old Navy, NA. Revenue Growth Against Competitors Revenue Growth % (Year Ending) 2008-01 2009-01 2010-01 2011-01 2012-01 Avg. Growth Q-=,-.(!L0?1!?0L1!E0S"!G0GA!80S8!80D11!R-.F%(!?08"!"08!E0?G!G0DD!G0?A!G0"L?!RH%!Rik!23,4-5)%:!A0"D!G0?D!?0AL!L0D8!80?S!?0"LL!h3H=^:!80?"!`E08"!10LD!A0E?!"0"8!G0L11!N3::!+(3.%:!A0"A!L088!DE0A?!S01S!S011!S0DE"!6= !!"A!!Chart 25: Gap, Inc. Growth Share Matrix Against Competitors Chart 26: Gap, Inc. Growth Share Matrix Against Gap NA Competitors !!"L!!Chart 27: Gap, Inc. Growth Share Matrix Against Banana Republic Competitors Chart 28: Gap, Inc. Growth Share Matrix Against Old Navy Competitors ! !!"S!!Operational Efficiency C5!->)=)(/!(3!,)()F-(%!&3:(:!H-:!-==37%%.:!:H37!U-4^:!-*%.-F%!34%.-()5F!,-.F)5!(3!>%!D"c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hart 29 Gap, Inc. Operating Margin Against Competitors !+3'.&%\!;3.5)5F!+(-.! !!GE!!Chart 30 Gap, Inc. Days Inventory and Turnover Rate !+3'.&%\!;3.5)5F!+(-.!COMPETITIVE ANALYSIS CHART 31: PORTER'S FIVE FORCES Force Strategic Significance M5(%.5-=!N)*-=./!I$6*)#5(./!O!#$)(!J3A)+'44=)%.!P37%.!G30".&%")9'/%.!P37%.!G30".&%")+'>:()('(%:!O!23,4=%,%5(:!I$6*)INTERNAL RIVALRY C:!,%5()35%':)5%::%:!7H)&H!:%.*)&%!<)WW%.%5(!&':(3,%.!>-:%:0!9-5-5-!N%4'>=)&^:!4.3<'&(:!-.%!-),% !!GD!!&=-::)&-==/!:(/=% !!G"!!ENTRY & EXIT RH%!=-.F%:(!&3:(l>-..)%.!3W!%5(./!(3!%5(%.)5F!(H%!-44-.%=!)5<':(./!H-:!H):(3.)&-==/!>%%5!(H%!-&J').)5F!3W!4.34%.(/!-5')=<)5F!'4!3W!)5*%5(3.)%:!W3.!>.)&K!-5':)5%::%:0!@37%*%.!(H%!.%&%5(!:'>:(-5()-=!F.37(H!)5!(H%!<).%&(`(3`&':(3,%.!)5<':(./!(H.3'FH!%`&3,,%.&%!H-:!%5&3'.-F%=):H%'()35:!3W!K%/!%,4=3/%%:0!C=:3Y!U-4^:!->)=)(/!(3!<%*%=34!-5.-5<:!):!K%/!(3!)(:!:'&&%::0!M(!F)*%:!U-4!-5!)5H%.%5(!% !!GG!!43(%5()-==/!W-)=)5F!<'%!(3!43=)()&-=Y!W)5-5&)-=Y!3.!.%F'=-(3./!)::'%:Y!&3'=%!-WW%&(%/!&H-5F%:!)5!(H%!*-='%!3W!(H%!X0+0!<3==-.!.%=-()*%!(3!3(H%.!W3.%)F5!&'..%5&)%:0!!U-4!':'-==/!,':(!3.<%.!,%.&H-5<):%Y!-5%W3.%!(H%!-&('-=!4.3<'&(:!-.%!:3=<0!RH%!=%5F(H/!=%-)=)(/!(3!.%:435%&-':%!-44-.%=!):!-!:%-:35-=!>':)5%::Y!U-4!,':(!&-../!%$&%::!)5*%5(3./!4.)3.!(3!-!4%-K`:%==)5F!:%-:350!@%5&%W3.(HY!)W!U-4!)5-<%J'-(%=/!-5()&)4-(%:!<%,-53((3,!=)5%!7)==!:'WW%.0!RH%!=3::!3W!35%!3.!,3.%!,%.&H-5(:!&3'=%!,)5),-=!7)(H!H'5<.%<:!3W!*%5<3.:!:%.*)&)5F!U-40!!U-4!,':(!-=:3!%WW%&()*%=/!3>(-)5!.%-=!%:(-(%!(3!34%5!5%7!:(3.%:!5-()35-==/!-5)=)(/!3W!.%-=!%:(-(%!(H-(!,%%(:!U-4^:!&.)(%.)-!W3.!(.-WW)&Y!:J'-.%!W33(-F%Y!&3`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a!%*%./35%!5%%<:!&=3(H)5F0!@37%*%.!(H%.%!-.%!:'>:()('(%!F33<:!(3!&=3(H)5F!-5-F:Y!-5'/!_%7%=./!-5=%!&':(3,%.:!73'=%!,3.%!)5&=)5% !!G8!!SWOT ANALYSIS CHART 33: SWOT !STRENGTHS Brand Name • U-4^:!>.-5.-5<:!-5->/U-4Y!U-493=)&Y!6=%%5!.%F):(%.% !!G?!!Broad Market Reach • 65%!3W!U-4Y!M5&0^:!F.%-(%:(!-<*-5(-F%:!):!(H-(!(H%!&3,4-5/!H-:!,'=()4=%!>.-5<:!)5!U-4Y!6==)&Y!C(H=%(-Y!-5.3-3(H!H)FH%.!%5-=!>.-5 !!GA!!C5-=/:(!i3H5:35!53(%:0!d9'(!)W!/3'!H-*%!DY8EE!'5)(:Y!)(^:!-!<)WW%.%5(!)::'%0!U-4!:'WW%.:!,3.%!>%&-':%!3W!)(:!:)T%0e!i3H5:35!-5%=)%*%!(H-(!dU-4!73'=%!>%((%.!3WW!34%.-()5F!AEE!:(3.%:!'5<%.!)(:!5-,%:-K%!=->%=!)5!(H%!X0+0Y!-53((3,!8!(3!DE!4%.&%5(!3W!)(:!:(3.%!W=%%(1"0e!Dependence on Third Party Vendors • M5<%4%5<%5(!(H)._%&(!(3!(H%!&3:(:!-::3&)-(%3.!&3:(:Y!-5/!-!>=-5.)FH(=/!&3=3.%%!)5!U-4!:(3.%:!'5()=!,)<`B%>.'-./!:3!)(n:!(33!%-.=/!(3!<.-7!-5/!&35&=':)35:Yp1G0!9%&-':%!U-4!<%*%=34:!-==!3W!)(:!375!4.3<'&(:Y!(H%!&3,4-5/!H-:!(H%!->)=)(/!(3!.%*)(-=)T%!)(:!<%:)F5!-5':)5%::0!!International Expansion • U-4!H-:!>%%5!73.K)5F!(3!%$4-5:)(%!)5!SE!5%7!&3'5(.)%:!-5.'-./!"S(HY!"ED"!U-4!-553'5&%)-Y!X.'F'-/Y!-5!:-=%:!)5&.%-:%)==)35Y!'4!W.3,!bD0GE!>)==)350!RH%!7%>!-&&3'5(%!:-=%:Y!-44.3$),-(%=/! !!GL!!bD"A!,)==)350!#`&3,,%.&%!&35()5'%:!(3!F.37!)5!:)T%!-5':)5%::!)5!(H%!W'('.%180!THREATS Economic Threats • U-4^:!4%.W3.,-5&%!):!:'>_%&(!(3!F%5%.-=!%&353,)&!&35<)()35:!-5)=)(/Y!W='&('-()5F!W'%=!-5(!=%*%=:Y!.%<'&()35:!)5!5%(!73.(H!>-:%%!4.3>=%,-()&Y!-&&3.<)5F!(3!-!.%43.(!>/!9=33,>%.FY!7H)&H!43)5(%3FF%/!H)FH%.`(H-5`-*%.-F%!'5%,4=3/,%5(Y!:('<%5(!=3-5!<%>(!-53'(!(H%!%&353,/1A0e!;3.%!-=-.,)5FY!(H):!<%,3F.-4H)&!:%%,:!.%='&(-5(!(3!:H34Y!-&&3.<)5F!(3!.%:%-.&H!>/!Q+I!+(.-(%F)&!N%(-)=1L0!Global Sourcing and Manufacturing Risks • M5<%4%5<%5(!(H)./!(H%!&3:(!3W!(H%:%!4.3<'&(:0!23,,3<)(/!4.)&%:!:'&H!-:!&3((35!F.%-(=/!-WW%&(!(H%!&3:(!3W!>':)5%::0!C<<)()35-==/!)(!,)FH(!>%!H-.)=)(/!(3!F-'F%!W-:H)35!(-:(%:!3W!&':(3,%.:!-5-.F3:Y!3.!&':(3,!.%:(.)&()35:!-F-)5:(!-44-.%=!)(%,:!&3'=':)5%::1S0!Competition • U-4!W-&%:!%$(.%,%!&3,4%()()35!)5!(H%!-44-.%=!)5<':(./0!U-4^:!>.-5<:!&3,4%(%!53(!35=/!7)(H!:,-==!:4%&)-=(/!.%(-)=%.:!>'(!-=:3!7)(H!=-.F%.!<%4-.(,%5(!:(3.%:!-5 !!GS!!STRATEGIC RECOMMENDATIONS REVITALIZE THE GAP BRAND AND IMPROVE DESIGN Brand U-4Y!M5&0!>')=(!)(:!%,4).%!>/!(-.F%()5F!&':(3,%.:!)5!(H%).!(7%5()%:!-5%%5!'5->=%!(3!.%4=)&-(%!(H):!:'&&%::!)5!(H%!5%7!,)==%55)',0!U-4!H-:!W-&%-:%0!U-4!.):K:!=3:)5F!(H%).!%$):()5F!-F)5F!&':(3,%.!>-:%Y!7H)=%!W-)=)5F!(3!-&J').%!-5/!5%7!&':(3,%.:0!U-4^:!:/:(%,-()&!>.-5<)5F!W-)='.%!H-:!>%%5!4.%:%5(!W3.!(H%!4-:(!<%&-<%0!M5!"EEDY!-(!-!U3=<,-5!+-&H:!&35W%.%5&%!W3.,%.!U-4!2#6!V.%$=%.!:(-(% 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!!1D!!:(.35F!&.%-()*%!(-=%5(!):!-!K%/!W3&':!)5!"ED"Ye!:-)-=!-44-.%=!)5<':(./810!Business Differentiation and Understanding Customer Bases U-4Y!M5&0^:!(H.%%!&3.%!>':)5%::%:!U-4Y!9-5-5-!N%4'>=)&Y!-5':)5%::%:!7H3:%!:'&&%::!):!>/!-5/!U-4!-:!7%==!-:!(H%!->)=)(/!3W!(H%!&3,4-5/!(3!>.-5=):H)5F!:)F5)W)&-5(!<)WW%.%5&%:!)5!<%:)F5!-5.-5<0!;-5/!-5-=/:(:!H-*%!&35(%5<%':)5%::!W.3,!%-&H!3(H%.0!d+3,%(H)5F!(H-(!&3:(:!bGL!-(!U-4!:%==:!W3.!b"E!-(!6='.Fn:!i-WW%%!:(-(%:Y!pRH%!K%/!,%.&H-5<):)5F!%WW3.(:!)5&='<%!>.3-<%5)5F!(H%!-44%-=!3W!6=-=-5&%!>%(7%%5!'5<-(%-:)&:!-5=%!W-:H)35!3WW%.)5F:!-(!U-4!:(3.%:Y!-5=)&!=%::!%=)():(!)5!4.)&%Y!W)(!-5)=)(/!-5=%880e!Q%!>%=)%*%!)(!):!%::%5()-=!W3.!U-4!(3!,-K%!-5!%WW3.(!(3!>%((%.!'5<%.:(-5-:%:!W3.!%-&H!&3,4-5/Y!-5.-5-.F-)5!H'5(!=33K)5F!W3.!&H%-4%.!4.)&%:0!RH):!,-K%:!6=)==)35!&3,4-.%)==)35a!:H37!(H%!),43::)>)=)(/!W3.!6=-:):0!M(!73'=%!W3==/!W3.!6=/!H-*)5F!-!:)F5)W)&-5(!% !!1G!!(H.3'FH!(H%!9-5-5-!N%4'>=)&!=%5:!3W!,':(`H-*%!*%.:-()=%!73.K!7%-.!7)(H!:(/=%Y!(H%!9-5-5-!N%4'>=)&!n;-=)&Y!-!W-:H)35!=)5%Y!(3!,-(&H!-!:H37!K5375!W3.!)(:!% !!11!!CHART 36: BRAND AWARENESS BY AGE GROUP !+3'.&%\!dCWW='%5(!235:',%.!;-.K%(!)5!(H%!X0+0!?(H!#<)()350e!Store Atmosphere P-.(!3W!U-4^:!%WW3.(:!(3!.%*)(-=)T%!)(:!%,4).%!(H.3'FH!>.-5<)5F!,':(!)5*3=*%!-5!%WW3.(!(3!'4<-(%!:(3.%!-(,3:4H%.%0!+(3.%!-(,3:4H%.%Y!&.%-(%/!(H%!=-/3'(!-5':)5%::!-53.%/!(H%!r:-,%5%::^!3W!3WW%.)5F:0!V%:4)(%!:'&H!-!:%%,)5F=/!3>*)3':!3>:%.*-()35!:('<)%:!H-*%!:H375Y!)5!:'.*%/:!3W!.%(-)=%.:!-!F%5%.-=!&35:%5:':!3W!:%5:3./!:(),'=)!':-F%!7)(H)5!(H%!W-:H)35!:%&(3.Y!-(!3<<:!7)(H!-!&35(%$(!3W!:H344%.:!:%%K)5F!53(!35=/!'()=)(-.)-5!:'&&3.!>'(!H%<35):()&!F.-()W)&-()35!-:!7%==?"0e!!C&.3::!-==!7%-=(H!&=-::%:Y!:(3.%!-(,3:4H%.%!):!),43.(-5(!(3!&35:',%.:Y!(H3'FH!(H%!=%*%=!3W!),43.(-5&%!(H):!(%5<:!(3!(.%5%!,3:(!),43.(-5(!(3!9-5-5-!N%4'>=)&!-5%=)%*%!U-4!,':(!73.K!(3!>%((%.!'5<%.:(-5 !!1A!!CHART 37: STORE ATMOSPHERE OPINIONS +3'.&%\!dCWW='%5(!235:',%.!;-.K%(!)5!(H%!X0+0!?(H!#<)()350e!IMPROVE ADVERTISING AND SHIFT FOCUS BY CUSTOMER BASE 6*%.!(H%!4-:(!<%&-<%!U-4!H-:!&'(!<375!35!-<*%.():)5F!(3!(.),!&3:(:0!!2H-.(!GL!:H37:!H37!U-4^:!-<*%.():)5F!:4%5<)5F!H-:!&H-5F%/!&3,4%()(3.:!W3.!>.-5<:!U-4Y!9-5-5-!N%4'>=)&Y!-5%!35!4-.(!7)(H!)(:!&3,4%()(3.:!)5!(%.,:!3W!-<*%.():)5F!-:!c!3W!5%(!:-=%:Y!)(!,':(!>%!&35:)<%.%.'-./0!RH%!&-,4-)F5Y!=%/!+%5)3.!mP`;-.K%()5F!C,/!2'.():`;&M5(/.%Y!7H3!_3)5% !!1L!!(H%!p+'4%.,3<%=J')5:0p!2PO9!):!6=%%5!-&K537=% !!1S!!CHART 40: GAP, INC. ADVERTISEMENT SPENDING AGAINST BANANA REPUBLIC, NA. COMPETITORS Firm Advertising Spending USD 1000s 3 Yr Avg Advertising as % Net Sales 3 Yr Avg U-4!b8"8Y??A!!G0?Gc!N-=4H!I-'.%5!23.4!bDS"YEEE!!G0"Ec!]3.<:(.3,!bDGGYEEE!!D0"Ec!C55Y!M5&0!bASYGEE!!G0GEc!X.>-5!6'(W)((%.:!M5&0!b8LYGG?!!"01Ec!+3'.&%\!N%(-)=!+-=%:!CHART 41: GAP, INC. ADVERTISEMENT SPENDING AGAINST OLD NAVY, NA. COMPETITORS Firm Advertising Spending USD 1000s 3 Yr Avg Advertising as % Net Sales 3 Yr Avg Q-=,-.(!b"Y1EEYEEE!!10SEc!R-.F%(!bDY"AGYEEE!!D0LAc!h3H=^:!bLS"YGGG!!10SEc!U-4!b8"8Y??A!!G0?Gc!RH%!Rik!23,4-5)%:!b"1SY?GG!!D0DGc!N3::!+(3.%:!b88YSEE!!E0AEc!+3'.&%\!N%(-)=!+-=%:!C:!7%!H-*%!<%,35:(.-(%-:%:!W3.!%-&H!3W!)(:!W).,:0!Q%!>%=)%*%!U-4!5%%<:!(3!'4<-(%!)(:!-<*%.():)5F!(3!.%W=%&(!)(:!)5<)*)<'-=!&35:',%.!>-:%:!-5%((%.!'5<%.:(-5'/!)5!>'=KY!4'.&H-:)5F!:%(:!3W!&=3(H)5F!.-(H%.!(H-5!)5<)*)<'-=!-.()&=%:0!!9.-5.-5 !!8D!!&':(3,%.:!-.%!,3.%!=)K%=/!(3!>%!%5()&%/0!C!:',,-./!3W!,%<)-!':-F%!W3.!-F%!F.3'4:!-5%=37A"0!CHART 42: HOW AGE GROUPS INTERACT WITH MEDIA +3'.&%\!dCWW='%5(!235:',%.!;-.K%(!)5!(H%!X0+0!?(H!#<)()350e!CONTINUE TO DOWNSIZE IN THE U.S. MARKET AND EXPAND INTERNATIONALLY Downsize in the U.S. CHART 43: GAP NET SALES PER SQUARE FEET Net Sales Per Square Foot 2006 2007 2008 2009 2010 U-4!GS8!GA?!GG?!G"S!G1"!+3'.&%\!ZdU-4!M5&0!"EEA!C55'-=!N%43.(0e[!!Q%!.%&3,,%5=%!]3.(H! !!8"!!C,%.)&-5!:(3.%:!7H)=%!%$4-5<)5F!)5(3!5%7!.%F)35:!)5(%.5-()35-==/0!U-4^:!:(3.%:!H-*%!:H375!<%&=)5)5F!5%(!:-=%:!4%.!:J'-.%!W33(!5%-.=/!%*%./!/%-.Y!.%W=%&()*%!3W!-5!3*%.:-('.-()35!)5!(H%!X0+0!,-.K%(0!U-4!,':(!&35()5'%!(3!&=3:%!=%::!4.3W)(->=%!:(3.%:0!QH)=%!(H):!,)FH(!:)5K!.%*%5'%:Y!(H%!<%&.%-:%!)5!&3:(:!7)==!.%:'=(!)5!F.%-(%.!5%(!)5&3,%!W3.!(H%!&3,4-5/AG0!Expand Internationally C&&3.<)5F!(3!.%:%-.&H!<35%!>/!M&35!U.3'4!M5(%.5-()35-=!(H%!=-(%5(!<%,-5%!bD880"!>)==)35!)5!"EDD0!I-(%5(!<%,-5/!%&353,):(:!-:!(H%!)5<':(./!%-.5)5F:!3W!-!,-.K%(!7H%5!(H-(!,-.K%(!>%&3,%:!-&&%::)>=%!-5/!&3,4%()5F!W).,:0e!RH%!<):(.)>'()35!3W!(H%!73.=)==)35!3.!GE0S"!4%.&%5(Y!W3==37%/!#'.34%!7)(H!b1D0"!>)==)35!3.!"?081!4%.&%5(Y!-5>%-5!7)(H!bG?0L!>)==)35!3.!"G0A1!4%.&%5(!3W!(H%!73.=%.:!-.%!.%4.%:%5(%'(!W3&':!35!)5&.%-:)5F!)(:!&35&%5(.-()35!.-(H%.!(H-5!:4.%-<0!!U-4!H-:!>%%5!.-4)<=/!%$4-5<)5F!)(:!)5(%.5-()35-=!>-:%!=-.F%=/!(H.3'FH!W.-5&H):)5F!-F.%%,%5(:0!RH):!):!=-.F%=/!.%W=%&(%-:%!(3!3*%.!"EEY!%$4-5<%.)5quotesdbs_dbs17.pdfusesText_23