Gap was once one of America's most beloved apparel retailers, known for its laid-back basics and classic denim.
The company announced Mattel executive Richard Dickson will become Gap's new CEO.
Here's the story of the company's rise to mall brand darling and eventual fall from grace.
Gap announced on Wednesday that its new CEO will be Mattel executive Richard Dickson.
Dickson has been credited with reviving the Barbie franchise during his tenure at the toy company. Gap is hoping he'll produce similar results after years of sales woes and strategic missteps. Dickson is scheduled to begin his new position in August.
For decades, Gap was one of the most beloved retailers in the US and an emblematic part of American fashion and style. With its laid-back classics and iconic denim, the company became the go-to destination to obtain the effortless jeans-and-t-shirt look at an accessible price. Its vibrant marketing campaigns brimmed with catchy jingles and popular celebrities, and for a period in the 1990s and early 2000s, it seemed impossible to walk down a street in the US without seeing a Gap sweatshirt.
However, the retailer has been caught in an uphill battle for relevance in an era where mall brands continue to lose their luster, falling behind trendy e-commerce sites and direct-to-consumer brands. Gap suddenly went from basic to bland, and now even bright spots like Old Navy, which is part of the brand's portfolio, may be losing their footing.
Though Gap still remains the largest specialty retail company in the US — in addition to its namesake company and Old Navy, it also operates Banana Republic and Athleta — whether it will be able to gain relevance remains to be seen.
Here's a look at Gap's humble beginnings of selling Levis and records, through its meteoric rise across America to its eventual fall.
Gap was started by Doris and Don Fisher in San Francisco in 1969.
Gap founders Doris and Don Fisher.
Gap
The reason for starting the store was "simple," according to the Fishers — Don couldn't find a pair of jeans that fit him correctly.
Gap's popularity exploded. The next year, the Fishers opened a second store in San Jose and then established a company headquarters in Burlingame, California, in 1971.
The store became synonymous with American classics, like blue jeans and T-shirts.
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In 1976, Gap officially went public.
A terrace at the Gap office in San Francisco.
Gap
As Gap looked to grow the company, it started to eye acquisitions and developing new brands. In 1983, Gap acquired Banana Republic.
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As part of Gap's growth strategy, it also moved into new apparel categories, including children's clothing, leading to the launch of Gap Kids in 1986.
FILE - This Aug. 23, 2018, file photo shows a window display at a Gap Kids clothing store in Winter Park, Fla. The Gap Inc. reports financial results Thursday, Aug. 22. (AP Photo/John Raoux, File)
To help develop a more upscale identity, Gap brought on Millard "Mickey" Drexler as CEO, who oversaw the company for much of the 1990s.
Mickey Drexler as CEO of Gap in 1998.
Darryl Bush/Getty Images
During his tenure, Old Navy was created, initially intended as a lower-priced alternative to Gap when it opened its doors in 1994.
Reuters
Old Navy quickly became beloved across a wide consumer demographic for its playful designs and fun slices of Americana, like its annual Fourth of July apparel.
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However, after a 29-month period of slumping sales attributed to over-expansion, Drexler was asked to step down in 2002. This was the first sign that Gap's fortunes could turn.
Mickey Drexler with Diane von Furstenberg and Jenna Lyons.
Rob Kim/Getty Images
Drexler later went on to become the CEO of J.Crew.
Also in 2006, Gap was among the retailers implicated in a series of labor rights protests after reports surfaced alleging poor working conditions at factories overseas.
Looking to the future of retail, Gap embarked on a series of failed experiments including launching Piperlime in 2006.
"The Office" star Jenna Fischer at a Piperlime event.
Barry Brecheisen/WireImage
The online retailer served as an attempt to get ahead of the growing e-commerce space but was later shuttered in 2015.
In 2007, Gap shuttered its retail concept Forth & Towne after just 18 months. The store was intended for women 35 years and older.
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Learning from its mistakes, Gap turned instead to acquisitions and purchased Athleta in 2008.
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Despite accounting for a relatively small piece of the business, the Athleta brand consistently performs well.
Despite its struggles, Gap still managed to garner buzz during this period, including high-profile moments like a store visit from President Barack Obama.
U.S. President Barack Obama looks for gifts for his family with salesperson Susan Panariello after stopping off at the GAP in New York
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Still, Gap brands began to feel the weight of dwindling foot traffic in malls and the push toward e-commerce. In October 2011, the company announced it would close 189 stores in the US by 2013.
Justin Sullivan/Getty Images
As Gap continued to struggle in the following years, it turned its sights back toward acquisitions and other growth areas.
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In 2013, Gap acquired the designer clothing company Intermix, adding a hint of luxury to the portfolio.
Mark Sagliocco/Getty Images
In 2021, Gap sold Intermix to the private equity firm Altamont Capital Partners for an undisclosed amount.
Still, sales continued to suffer, and performance at Gap's namesake brand remained especially bleak.
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In February 2019, Gap announced that it would spin off Old Navy as an independently run brand.
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However, just a few months later, the brand posted its first sales decline in three years in the second quarter of 2019, with a subsequent drop in the third quarter. The company later ditched plans for a spin-off.
Adding fuel to the fire, Gap announced CEO Art Peck would be stepping down from the company in November 2019.
Gap Inc. CEO Art Peck speaks at the 2015 Clinton Global Initiative's Annual Meeting.
JP Yim/Getty Images
Peck had worked at the company for 15 years and had been CEO since 2015. Board member Robert Fisher acted as interim CEO in Peck's absence. The company did not provide a reason for Peck's departure.
Peck leaving, paired with bleak sales across the brand portfolio, was followed by an immediate drop in the company's stock price.
FILE - This Aug. 23, 2018, file photo shows a window display at a Gap clothing store in Winter Park, Fla. The Gap Inc. reports financial results Thursday, May 30, 2019. (AP Photo/John Raoux, File)
In March 2020, Gap appointed former Old Navy executive Sonia Syngal as its CEO. She cut costs and raised $2.5 billion in funding in an attempt to save the company.
CEO, Gap Inc Sonia Syngal attends AAFA American Image Awards 2022 The Plaza Hotel - 5th Avenue on April 26, 2022 in New York City.
That year, the company announced a collection of t-shirts and sweatshirts in collaboration with Kanye West's Yeezy brand. The company's stock price rose as much as 43%, but the hype didn't last.
Kanye West
Evan Agostini/Invision/AP
By January 2022, just two items were released. The delayed roll-out began to frustrate Gap, sources told the Financial Times. Industry insiders were skeptical the partnership would pan out.
In September 2022, the rapper, who now goes by the name Ye, told Gap in a letter that he would terminate his contract with the company. One month later, the company officially cut ties with Ye after a backlash over antisemitic comments he made.
In July 2022, Syngal stepped down and the company appointed executive chairman Bob Martin as interim CEO while it searched for a permanent replacement.
A man shops inside a Gap Inc retail store in New York.
Reuters
Martin restructured the company by streamlining management, cutting jobs, and merging store and e-commerce operations.
Justin Sullivan/Getty Images
Martin told the Wall Street Journal that the company had become siloed.
In July 2023, the company announced Mattel executive Richard Dickson will become Gap's new CEO in August.
Richard Dickson, then President and COO of Mattel, Inc, during a press conference at the United Nations headquarters in New York City, New York, September 7, 2018.
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Gap is hoping Dickson will breathe new life into the company, just as he helped Mattel revive the Barbie brand.
A “curvy” Barbie, by Mattel, is shown at Toy Fair in New York.
