Online sales exceed $6 billion, Gap's e-commerce business grows rapidly

Due to the impact of the new coronavirus , a large number of offline stores in the United States were closed, and the total net sales of clothing and accessories retailer Gap Group declined during this period . However, its online sales soared during this period .

In fiscal 2020, Gap's online sales increased 54% year-on-year to $6 billion, accounting for 45% of total sales, up from 25% in the same period last year. The retailer said the growth of its online business reflects its digital platform and omnichannel capabilities . In addition, the number of Gap customers increased by 14% during the year to 183 million.

The retail group closed 228 Gap and Banana Republic stores as online sales grew . "We faced the most challenging year in our company's history , and throughout, our teams demonstrated resilience and determination and charted a course for the long term, " said Sonia Syngal, Gap chief executive .

Sonia Syngal also said that with targeted marketing and strength and advantages in related categories such as active and fleece , Gap has gained significant market share quarter by quarter in a fragmented environment.

For the full year ended January 30 , Gap Inc. reported net sales of $13.8 billion, down 16% from $16.4 billion a year earlier, with sales of $11.6 billion in the U.S. and $329 million in Europe.

In the 13 weeks ending January 30, Gap Inc.'s fourth-quarter net sales were $4.42 billion, down 5% from $4.7 billion in the same period last year. In addition, in the fourth quarter , Gap's online sales increased 49% year- on-year , accounting for 46% of net sales in the quarter, 17 percentage points higher than the same period last year .

Commenting on the figures, Kurt Trauth, senior vice president of CX strategy and analytics at experience analytics firm Stratifyd, said : “Gap’s recent $140 million warehouse investment clearly demonstrates that it recognizes the growth opportunity for e-commerce for brands like Old Navy and Athleta.”

Jared Blank, chief marketing officer of e-commerce and marketplace VTEX, said growth in Gap’s Athleta business — up 16% to $1 billion in annual sales — is outpacing both Gap and Banana Republic, a sign of the popularity of the athleisure category.

USA

clothing

Gap

E-commerce