I went to 3 Gap stores in New York City and saw firsthand why the 'tired' company needs a revamp

• Gap is positioned for a comeback this year. 
• With a new CEO, Gap could go from a tired mall brand to a revamped heritage retailer. 
• I visited three Gap stores in New York City to see what the company needs to improve.

This could be the year of Gap's comeback.

Once known as a staple American mall brand, Gap lost its relevance among consumers who traded shopping centers for e-commerce. As mall traffic declined, so did Gap's sales. In the second quarter of 2019, the brand's sales declined for the first time in three years.

Now the company is chartering a path to reinvent itself alongside a new CEO, Richard Dickson, who came from Mattel after a successful makeover of the Barbie brand.

Analysts have faith that Dickson could be just what the company needs to turn itself around.

Ellyn Briggs, a brands analyst at Morning Consult, is "expecting him to inject some of that Barbie or Mattel spirit into Gap," she told Business Insider.

"Richard Dickson is integral to the changes being made," retail analyst Neil Saunders wrote in an email to BI. "He is an outsider who has brought a breath of fresh air to a tired company."

There's still a lot of work to do before the company posts any gains. In 2023 Gap's total Q3 sales of $887 million were down 15% compared to last year. In the company's November earnings call, Dickson laid out his plans to "reinvigorate" the brand.

"Gap brand, as you know, has tremendous heritage as a pop culture brand," Dickson told investors. "But lately, Gap has been far too quiet in the cultural conversation. We need to reignite that dialogue, offering confident trend-right assortments, price right and express through big ideas and culturally relevant messaging."

I visited three Gap locations in New York City — Fifth Avenue, Grand Central, and Times Square — to see what the brand is doing well and what it needs to improve if it wants a resurgence in 2024.

What Gap is doing well (but could lean into more):

Better-positioned basics

Gap has an opportunity to go beyond basics. They do basics well, but competition is tough when you can buy cheap basics on Amazon and Shein.

But there's opportunity for the brand to set itself apart from others. Briggs suggested two ways Gap could position its basics: by upping the quality so they enter a mid- to upper-tier brand or by offering them as dupes of more expensive brands like Anthropologie and Free People.

"Their runway for reinvention is really quite large because they're known right now for their simple basics," she said.

Products made from recycled fibers

Gap quietly seems to be ahead of many fashion brands today in its sustainability efforts. According to the brand's website, Gap first established social and environmental standards with its suppliers in 1994, a step many brands have only recently taken.

Several pieces I shopped had green hang tags labeled "Gap for Good," the company's sustainability initiative. These clothes are either produced with Gap's water-saving program, Washwell, or made with more sustainable materials, like recycled and organic cotton.

Not only did these tags catch my eye, but they made me highly consider buying clothes at Gap versus other brands at comparable price points. As sustainability becomes a bigger priority to shoppers, especially Gen Zers, Gap's efforts could be a major selling point.

What Gap needs to improve:

Designs need more fine-tuning

Gap's design team is playing it too safe for today's competitive market. While the basics are good, the more fashion-forward pieces are lackluster at best and outdated at worst.

There are a few stand-out pieces, like wide-leg cargo khakis that felt like a natural Gap-ification of the cargo pant trend. I also spotted a cool faux leather blazer on a couple of mannequins, and when I tried to find it on the racks, it appeared there was only one left in stock, which signaled to me that it performed well.

While there were some promising styles, several designs fell flat. Take, for example, a denim women's button-down shirtdress with a standing collar, long sleeves, and a tiered skirt. It looked like a bohemian style from 2006 that my then 5-year-old sister would have worn at the time. Hanging next to it was an equally outdated cotton mauve eyelet button-down shirt.

As if one bad denim dress wasn't enough, I spotted another denim shirtdress with comically large, billowy sleeves that didn't mesh well with the rest of its A-line structure.

Rebrand the logo as a status symbol

I noticed a considerable amount of shelf space devoted to Gap's signature logo sweatshirts, but I wasn't sure how much today's consumers care about the brand's name.

Marketing the hoodie to teens and Gen Z as a status symbol — much like a Stanley cup or Nike sneaker — could be a huge opportunity to bolster Gap's coolness factor. The product would be a natural fit within popular street style, and the company already produces several variations and colors to give young shoppers the customization they desire.

Marketing to younger generations

On that note, Gap could be doing a lot more to market to younger generations. While older generations remember Gap from its heyday, Gen Z and Gen Alpha have very little awareness of the brand. In 2001, Gap was the favorite brand among American teens in Piper Sandler's bi-annual "Taking Stock of Teens" survey. In 2022 and 2023, Gap didn't make it into the top 10 ranking. Meanwhile, the brand ranked third for top brands no longer worn by upper-income teens in fall 2023.

This was apparent when I shopped at the three Gap stores. I noticed a few teens hanging out around the cargo pants at the Grand Central location. Then, while I was in the fitting room at the Times Square store, I overheard a trio of Gen Zers helping a friend pick out professional clothing for a job interview. Other than these instances, it appeared most shoppers were at least millennials or older.

Briggs suggests brands like Gap go where their younger customers spend much of their time: TikTok, YouTube, and Instagram. This also means investing in influencer marketing and creating viral marketing campaigns, which can be especially effective for reaching female Gen Z shoppers, a Morning Consult report found. "Our data and economic data shows that they're spending a lot of money on products that are going viral online," Briggs said.

"Ultimately, young people always have been drivers of popular culture," Briggs continued. "They kind of set the tone for what's cool."