In June, GAP Group'S Net Sales Increased By 2% Compared With The Same Period Last Year.

In the newly released June sales report, it was in the first 5 weeks of July 2nd.

Group net sales reached $1 billion 570 million, compared with the same period last year, an increase of 2%, the same store sales performance is better than last year, all exceeded expectations.

You know, Thomson Reuters's prediction for GAP has fallen by 3.2%.

As of the 2015 quarter of January 30, 2016, the GAP group's same store sales fell by 7%, of which GAP, BananaRepublic and Old Navy were three.

The same store sales fell by 3%, 14% and 8% respectively, and there was a big crash.

In this era when every brand is in urgent need of growth, the decline in performance seems to be the norm, and any brand growth phenomenon needs our attention. Maybe the one we ignored is the driving force of its growth.

Then, let's count the actions that GAP has made since the beginning of the financial report.

You can also analyze the right side of it.

Close shop: increase revenue and reduce expenditure

The first quarter of 2015 was poor in the fourth quarter, and the first quarter of 2016 was also unsatisfactory. This is the fifth consecutive quarterly decline in GAP.

GAP decided to close 75 OldNavy and Banana Republic stores outside North America, including all the 53 Old Navy stores in Japan.

Next, it has shifted its focus to the most beneficial market for brand growth, such as China.

Shop: we will open 40 stores and aim at two or three line cities.

Facing the fierce competition environment, GAP is very worried about the decline of its competitiveness.

GAP is still optimistic about China.

But it is aiming at China's two or three tier cities.

While shrinking globally, closing stores and layoffs, GAP said it will open 40 new stores in China this year.

Some people say that in order to maintain growth in performance, fast fashion brands only expand the number of categories and shops.

When the stores in the first tier cities are saturated, new stores can only be opened to the two or three tier cities.

Gap or stationed in Amazon

The collective weakness of the three brands will almost push GAP into a dead end.

The group may consider entering Amazon Amazon to seek the hope of recovery.

GAP's CEO said that from his point of view, it is impossible to ignore Amazon and other channels at present, and GAP has been considering opportunities outside traditional stores and other channels.

Perhaps, you don't understand, is it strange to enter Amazon?

You know, because of the early start of electricity business, large apparel retailers in the United States basically have their own online channels, and have always refused Amazon's olive branches in order to avoid being passive.

Service upgrade: store delivery

This summer, GAP launched its store delivery service, which combined Tmall mall in China to implement a full channel strategy. The Gap brand Tmall flagship store joined 57 stores in 12 cities in mainland China.

During the activity, consumers will place their orders at the Tmall store flagship store of Gap brand, and the system will automatically help to choose the distribution from their nearest stores or delivery warehouses, effectively improving the efficiency of goods distribution.

In addition, consumers can check whether there are goods they like in the nearby stores through the web page, and try and buy them in person.

However, GAP's chief financial officer and Group executives agreed that the surge was due to a huge flow of shops to shops in June, which further stimulated sales growth, especially the surge in Old Navy store traffic, which led to an unexpected increase in the sales of the brand.

However, some people say that the Gap group has reduced the heavy inventory pressure by way of discounted sales, resulting in the company's gross profit margin falling to its lowest level in 2003. Excessive discount sales methods may lead consumers to no longer buy full price products, while Dan Yueye's performance in June does not mean that the group's performance has started to rebound.