Banana Republic Announces Leadership Shakeup As Sales Continue To Drop, Can It Survive?
By Fox Business // January 28, 2017
(FOX BUSINESS) – Banana Republic this week announced a leadership shakeup, but analysts question whether the Gap’s (GPS) up-market brand, which has struggled with falling same-store sales for the past year and a half, can weather the storm battering much of the retail sector.
As consumer shopping habits have moved increasingly online, Banana Republic has struggled to carve out its niche to drive customers through the door. The biggest problem for the brand is its lack of clear, unique identity — coupled with the rise of fast-fashion competitors like H&M, Zara, and Forever 21, said New York-based retail consultant, Bob Phibbs, CEO of Retail Doctor.
“The reality is no one has figured out who they are,” he said.
“Gap is [a] forgettable brand, and that spills over to Banana Republic…they need to cut the number of SKUs, cut the number of employees, and justify why I should pay $90 for a shirt with something compelling and interesting.”
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