During its annual investor meeting, Gap Inc. highlighted its use of technology, innovation and scale as competitive advantages as it makes progress toward bridging the growing digital world with its physical stores to create omnichannel shopping experiences for its customers.
“As the retail landscape evolves, we continue to deliver on our omnichannel roadmap and focus on owning the shopping experience of the future,” said Glenn Murphy, chairman and chief executive officer of Gap Inc., in a press release.
The company discussed its plans to continue driving online growth by leveraging technology and innovation combined with top talent to deliver new digital capabilities to customers and make further progress in mobile, personalization and loyalty programs.
Building upon its current omnichannel suite – including reserve in store, find in store and ship from store – later this year, the company will be testing its new order in store capability, which will allow customers instant access to expanded product offerings online.
Further, the company is announcing the expansion of its reserve in store service to all Gap stores in the United States by the end of the second quarter, which will enable online and mobile shoppers to reserve items at more than 1,000 Gap and Banana Republic store locations.
In addition to its omnichannel capabilities, the company will reaffirm its intention to fuel growth and gain share in the $1.4 trillion global apparel market. Murphy and company executives have discussed plans to grow through expansion in Asia, as well as in its global outlet, online and franchise channels. The company also is excited about the long-term potential of its fast-growing Athleta brand.
Building on Old Navy’s recent debut in mainland China and Gap’s growing store base in the world’s second largest apparel market, the company highlighted China as its largest growth initiative, where it expects sales to reach $1 billion in three years.
Gap Inc. leaders also discussed progress against its move to a seamless inventory model and a more responsive global supply chain, both designed to fulfill customer demand with increased speed and flexibility, while unlocking revenue and gross margin potential.
“In the next five years, we plan to leverage our scale to drive our strategic initiatives – including global growth plans, omnichannel strategies, a seamless inventory model and fully responsive supply chain,” Murphy said. “We expect these initiatives to contribute meaningfully to our revenue growth and operating profit.”