Gap is a major American retailer of casual apparel. This industry is mature, and highly fragmented. As such, the Gap and its competitors each have a relatively small market share. There are over 400 significant industry players (Global Industry Analysts, 2010). There are some generalizations, however, that can be made with respect to this market and Gap's position within the casual apparel market.
Overall, the casual apparel market in the United States is worth an estimated $195.6 billion as of 2007, with an annual growth rate of 3% (Business Wire, 2008). Given the economic slowdown, it is reasonable to assume that growth has stagnated since that point in time, so that the market is roughly the same size today as it was three years ago. The Gap's annual sales are approximately $14.195 billion (MSN Moneycentral, 2010), but 21% of that revenue is from outside North America. This leaves North American sales of $10.646 billion. Once estimates for Canadian sales are removed, Gap's estimated U.S. sales of $9.581 billion give it a market share of 4.89% in the United States (Townsend. The Gap is therefore one of the leading retailers of casual apparel in the country.
As the casual apparel market has stagnated, so too has the Gap's overall performance. The company has seen its sales decline every year since 2006, meaning that the Gap was losing sales even before the current economic crisis (MSN Moneycentral, 2010). In all of these years, the Gap has lost market share to its rivals. There are no specific U.S. figures for these years, but North American sales as a percentage of total sales has been steadily decreasing for years. The company is trying to rejuvenate U.S. sales by focusing on mobile and Web marketing, and has seen some increases in those sales, to over $1 billion worldwide (Townsend, 2010).
Because the casual apparel industry is so fragmented, the Gap has a large number of competitors. Many of these competitors skew strongly to either the high fashion, high price or low fashion, low price quadrants and thus only compete loosely with the Gap. There are thousands of smaller mom-and-pop competitors in the industry, but they are not good points of comparison to the Gap specifically because of their limited scope. Among the remaining competitors are Aeropostale, American Apparel, J. Crew Group, TJX Companies (TJ Maxx, Winners, Marshalls, etc.), American Eagle, Nordstrom, Limited Brands, Urban Outfitters, Abercrombie & Fitch and Ross Stores (Yahoo! Finance, 2010).
Among these competitors, The Gap is one of the largest. The company has the largest market capitalization of any of its rivals at $11.88 billion, although many other competitors are in the billion-dollar class, both in terms of market cap and U.S. sales of casual apparel. The Gap's status as the largest of these reflects that the Gap is more international in scope, selling clothes in 80 countries worldwide. This gives it revenue streams that many of its competitors do not have.
Among the major competitors, the Gap's competitive position can be explained graphically in terms of two major factors in consumer buying decisions -- price and style. The Gap is taking steps to…
The American Eagle Outfitters is another important competitor of the Gap. This company focuses on online selling, but has also decided to increase the number of traditional stores it owns. Competition from potential new entrants to the industry The threat of new entrants is quite reduced in the U.S. clothing industry. This is because success in this industry depends on several important factors. In this case, it is important to be
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2010 Description of Industry Gap, Inc. is one of the most leading American forte apparel retailers who foundation is centered in San Francisco, California. It trades things like the casual apparels, decorations, and other products that are personal for men, women and children. The merchandises of Gap, Inc. comprise of khakis, T-shirts, boxers, denim, casual wear, and others. The trade is done in the New York Stock Exchange which goes up
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