| HBS Case Collection
Gap, Inc., 2000
From humble beginnings as a Levi jeans store, by 2000 Gap, Inc. had grown to become the world's leading specialist clothing retailer. Its CEO, Millard S. Drexler, the "merchant prince," was credited with transforming Gap into a global empire, leading the company through eighteen years of 21% p.a. growth to reach sales of $13.6 billion in 2000. But as Gap entered the new millennium, dark clouds were building on the horizon. While sales in 2000 were up nearly 18% over the previous year, operating profits fell by 20%, only the second profit fall since 1984. Gap found itself plagued with concerns about fashion misses, logistics failures, the departure of senior managers, and increased foreign competition. New fast-fashion competition in the form of Inditex, H&M, and Club Monaco threatened Gap's market share both domestically and abroad.
Keywords: Risk and Uncertainty;
Problems and Challenges;
Globalized Firms and Management;
Business Growth and Maturation;
Apparel and Accessories Industry;
Wells, John R., and Galen Danskin. "Gap, Inc., 2000." Harvard Business School Case 713-508, May 2013.