“In 2021, however, apparel appears well positioned to see an outsized benefit from the recovery dynamic,” Wells Fargo said.
Nearly 40% of consumers plan to return to “normal” spending levels in a post-pandemic setting, due to behavioral shifts and pent-up demand. The retail industry anticipates one of the biggest rebounds, and Gap Inc. is at the top of that list.
“This appears to reflect the potential for permanent behavioral shifts — though consumers are unlikely to spend as much time in athleisure or at home as in 2020, they may continue to update their closets with more comfortable clothing and invest in their home due to ongoing (and likely permanent) work-from-home dynamics,” analysts noted.
Gap announced its plans to sell their children’s clothing brand, Janie and Jack, which they acquired from Gymboree’s bankruptcy in 2019. This transaction will allow Gap to place a heightened focus on their other retail brands, in an effort to meet the ever-changing demands of consumers.
“As part of Gap Inc.’s Power Plan 2023, and exemplified by this transaction, we are prioritizing strategic focus and resources behind the growth and potential of our billion-dollar brands in Old Navy, Gap, Banana Republic and Athleta,” said Sally Gilligan, Gap’s Head of Strategy.
Stocks for Gap have increased significantly as retail sales rise. The retailer has jumped 40.4% over the last three months, and has skyrocketed more than 287.6% over the past year.
Source: Gap Post-COVID Comeback – Market Watch, Consumer Behavior Shifts – Retail Dive
Photo Credit: Gap Post-COVID Comeback – Market Watch
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands. Fiscal year 2019 net sales were $16.4 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through company-operated stores, franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.