Nearly a year after Gap Inc. revamped its Colorado stores with dark wood floors, fancy fitting rooms and cozy couches, customers and analysts are questioning whether the new look is enough to aid the struggling retailer.
The marketwide remodel debuted last year in what company officials touted at the time as a bold test that could serve as a springboard for similar remodels throughout the company. Even hangers and light fixtures got a face-lift, and company officials gushed about personalizing the Gap experience.
The San Francisco-based retailer says sales and traffic have increased in the remodeled stores, which number 60. Twenty more stores are scheduled for remodels, and the company said it is “refreshing” another 200 stores with some of the more popular components of the Colorado remodel, including paint and mannequins.
But some customers aren’t buying it.
“I like the look of the stores, but I don’t like the clothes,” said Jory Bergsing, a colorist at Raul Salon & Color Studio in Denver.
Bergsing, 32, said he once bought most of his clothes at Gap, but as he wandered through the store this week, he said the merchandise no longer appeals to him.
That sentiment is echoed by industry experts who give high marks to the new store design but fault Gap for uninspired fashions.
“You can remodel until the cows come home, but if you don’t have the product, it doesn’t matter,” said Jennifer Black, president of Jennifer Black & Associates, a Lake Oswego, Ore.-based retail and apparel research firm.
Gap has declined to say how much it spent remodeling its seven Colorado stores. It expanded the effort to Hartford, Conn., and San Diego and has also redone high-profile stores in New York and in Palo Alto, Calif.
“We’re enthused by the response we’ve gotten from customers and the momentum we’ve gotten internally (from the effort),” said Christopher Hufnagel, who spearheaded the redesign effort.
The company does not provide sales figures for individual markets, but the Denver stores are outperforming those in similar markets based on sales and traffic figures, he said.
“We’re not necessarily seeing more customers, but customers are coming back more frequently, which is how we think we are going to win in the long term,” said Hufnagel, Gap’s vice president of brand store experience.
On a national basis, sales at Gap stores are declining.
Fourth-quarter comparable sales for 2005 were down 7 percent from the previous year, and sales declined 5 percent for the year.
While Gap Inc. also saw sales slip in its Banana Republic and Old Navy divisions, difficulties with the flagship Gap brand have gotten the most attention.
Gap was founded in 1969 as a seller of Levi’s, then began offering jeans of its own. It built its reputation around casual looks, most recently with khakis and polo shirts.
“I just don’t see any excitement yet with shoppers regarding the Gap’s spring lineup,” said Britt Beemer, chief executive of Charleston, S.C.-based consumer-research firm America’s Research Group. “When you were once the hot item out there, you have to figure out how to retain being that hot item.”
Hufnagel said the company is intensely focused on fashion. “We are working tirelessly to improve the product for our customers,” he said.
The company is also refining its remodel plans and is taking lessons from the Colorado project. Localized items are gone, including tissue paper that featured the Denver skyline and sweatshirts that bore neighborhood names such as LoDo and Wash Park.
While such touches were popular with customers, Hufnagel said, they’re difficult to implement and don’t offer much return for the company.
Popular aspects of the remodel include chalkboards in the jeans area that describe the styles and sizes that are on the shelves and a lounge area where customers can relax and read newspapers and magazines.
Staff writer Kristi Arellano can be reached at 303-820-1902 or karellano@denverpost.com.
Gap history
Beginnings: The first Gap store opened on Ocean Avenue in San Francisco in 1969. Store founders Doris and Don Fisher described their goal as creating a store experience that was easy for the customer and that offered a wide selection of fits and styles.
What they’re saying: “I created Gap with a simple idea: to make it easier to find a pair of jeans. We remain committed to that basic principle.” – Don Fisher, writing on the company’s website
Growth: Over the years, Gap Inc. expanded to include Gap, Banana Republic, Old Navy and the recently launched Forthe & Towne stores, which cater to women over 35.
Where they are: The company has more than 3,000 stores, including more than 1,200 Gap stores, and annual revenues of more than $16 billion.
KRISTI ARELLANO
