Ding-A-Lings: Tick(er) Tock from the former GPS

(Coming out of my self imposed GAP commenting sabbatical, for a moment.) Celebrating his own anniversary with the company, Richard Dickson engineered another selfie-made moment - this time at the NYSE - making headlines by changing the ticker from GPS to GAP to celebrate Gap's 55th Anniversary. Wearing a eternally overexposed Gap Arch Hood. Another 'nod' to heritage and moving forward perhaps? Again, widely applauded and celebrated across Linked in and other platforms. But I ask, where is the substance? A quick visit to the website sees a less promotional stance for my former perpetually deeply on sale Alma Mater; 30% off vs the normally evergreen 40-50% + extra 10% off promotions, but in a world where certainly Richard and his team have had their time to build a strategy around their floundering namesake brand - what is really different? And have we determined who the customer is yet?

After the Audacity of the Spring Linen campaign and my own personal plea (shared by others) to abandon Linen and revisit their own denim roots as part of their 'heritage' ASAP, I am disappointed to see that Gap's offer going into fall is doubling down on a marketing aesthetic around dancing vs asserting their own place and product offer in a category that they once owned. Who is this product for? This campaign seems to continue to establish a priority customer demographic that are well toned dancers moving in synchronicity, or those that like to watch them. We are invited to Get Loose - but who is getting loose and this loose? The fits, the washes are exactly for whom?

Gap lost denim market share decades ago to players that continue to own and dominate the marketplace at higher and less promotional pricepoints; brands like Madewell, A&F, and American Eagle all own and lead the category in multiple fits, washes, and storytell around the product itself for each of their base demographics. They offer denim ranges which capture occasion, fit and function - with a bit of fun fashion. Gap's reentry into the category seems to focus on probably some of the least likely of fits for their (or any) customer. But I still come back to who is their customer? I think it is someone who likes to watch dancers. And I am not sure that is going to sell a lot of loose fit jeans.

Still, I am curious about what Gap may have on offer in Denim by the campaign so I click over to their site to investigate. Superficially, there are some improvements to Gap's site where you do see embedded video of dancers in key fits of extremely wide jeans, but click on product information and there is no sizzle, no storytelling, no effort to really say anything about each fit on the product page without clicking on the detail tab. Instead you get measurements and wash details which are literally lifted off a spec sheet. Gap, you can do better here. Look at the competition who are owning the category and how they frame up storytelling around fit, premium fabrics, wearability, body types and also create a landing page experience which features a more comprehensive experience and interface where you can find literally something YOU would wear. I look at some of these silhouettes on the Gap page and wonder who COULD wear it. And some of the fit names are cringe -- why is the High Rise Cheeky jean cheeky? You have to click on Product details to find out that it looks even better walking away. UGH.

Just like the changing of the ticker symbol, Gap seems to be pushing a narrative of 'we are back in the denim business' but there is not much substance over the marketing hype. Like the ticker change to GAP, it seems highly superficial. I close the page and go to the competition and fill my basket.

I flash back to the better days -- and recall the late 90's campaign in denim where Gap was introducing a looser, 'easy fit' jean that was more universal, and targeted the wide demographic that could be led to a new fit by someone with authority and authenticity in the category - with the tag line 'Easy' shared by LL Cool J to Aerosmith. Gap doesn't have the leadership chops in the category to lead the audience as they did in the past to any new fits, and a cursory review of the product (and the strange markdowns here and there and additional 30% off) shows that there isn't a great effort being put to communicate anything other than a marketing dance and a strange approach (probably generated by an AI markdown optimization tool) to determine pricing. Marketing strategies are not effective if the other P's aren't in place. Product and Placement are two that are still highly undefined, and Promotions are erratic [compared to frictionless % off seasonal promotions for AEO and ANF, and full price at Madewell]. Until the customer is asserted and the product is aligned to some identified customer base, it seems Gap will continue doing this dance, figuratively and literally.

And before the dancing starts around earnings results which are announced on the 29th let me say that we should not be comparing GAP results to what has been it's own 'low-bar' history. Look at metrics (including op margins) vs other leaders in the space and then give the grade. Dig out the old earnings reports to make meaningful comparisons. Expectations should be higher - mine certainly are. Even though the stock price increase over the past year may delight some shareholders enough to dance, I am not convinced this is more than a minute waltz.