Gap (clothing Retailer) - History

History

On August 21, 1969, Donald and Doris Fisher opened the first Gap store on Ocean Avenue in San Francisco. The store's merchandise consisted of Levi's and LPs. The Fishers had raised $63,000 to open the store, and in one year, Gap's sales had reached $2 million. In 1970, Gap opened its second store, in San Jose, California, and established its first corporate headquarters in Burlingame, California, with just four employees. Gap grew rapidly. By 1973, it had more than 25 stores, including areas outside California—entering the East Coast market with a store in Voorhees, New Jersey. In 1974, Gap began to sell private-label merchandise.

Millard Drexler, was responsible for Gap Inc.'s phenomenal growth in the 1990s. He transformed "the humble discount-jeans emporium with the groovy seventies vibe and goofy jingle into an international arbiter of style and a global megabrand. He had tossed out the Gap’s product line and reinvented it from scratch, redesigned the company’s stores from floor to ceiling, and ushered in breakthrough ad campaigns, from “Individuals of Style” (Whoopi Goldberg, Spike Lee, Lorraine Bracco) to “Who Wore Khakis?” (Andy Warhol, Marilyn Monroe, Picasso). By introducing consumers to stylish-but-affordable basics—khakis, pocket tees, prewashed jeans—Drexler exploded the myth that good taste has to be expensive. He allowed the masses to look good without going broke, and in the process, he not only changed the way the world dressed and built the Gap into a $14.5 billion behemoth. It could be argued that he invented casual chic."

— Meryl Gordon, Mickey Drexler’s Redemption, New York Magazine

Drexler was ousted in 2002 after over-expansion and a 29 month slump in sales, amid tensions between himself and the Fisher family. Drexler refused to sign a non-compete agreement and eventually became CEO of J. Crew. One month after Drexler's departure, merchandise that he had ordered was responsible for a strong rebound in sales. Robert J. Fisher recruited Paul Pressler as the new CEO. Pressler was credited with closing poorly performing stores and paying down debt. However, his use of focus groups didn't help Gap Inc. to recover its leadership in fashion. After two poor holiday sales seasons, Pressler resigned in 2007 and was succeeded by Fisher on an interim basis.

Patrick Robinson was hired as chief designer in 2007 and dismissed in May 2011 after sales failed to pick up. Robinson enjoyed critical success, particularly in international markets. His range of Perfect Black Trousers, launched in 2010, quickly became a front row uniform for fashion editors attending catwalk shows. He also masterminded sellout collections in collaboration with Stella McCartney and with the cult shoe designer Pierre Hardy. In 2011, Robinson attracted criticism for sticking to a muted, faded-pastel palette which lost out to the juicy brights and stark monochromes of other designers.

In October 2011, with US sales eroding Gap Inc. announced plans to close 189 US stores, or approximately 21 percent, by the end of 2013. The company, however, plans to expand its presence in China.