Gap (NYSE:GPS) is getting aggressive in its push to realign the branding of its stores. Earlier this month, the company’s chief marketing officer, Seth Farbman, unveiled a new series of short videos intended to be viewed on smartphones in Gap stores — brief non-commercials starring actual employees offering clothing care tips. It’s an understated campaign that potentially could rehabilitate a brand that has lost significant mindshare with the average shopper over the last decade.
On Saturday, the company announced a far louder strategy for reigniting interest in one of its other chains — namely, Old Navy. When your line of stores has watched its consumer base of teenagers and college-age girls flee to Target (NYSE:TGT) and other competitors, what’s a company to do? Diversify.
Gap is broadening Old Navy’s appeal through football in an aggressive marketing campaign that will run throughout fall. A report at Market Watch said around 1,000 Old Navy stores — nearly the entire chain in the United States — will have entire sections of their space blocked off for Super Fan Nation areas, which would be stores-within-stores. These will be stocked with both NFL-branded apparel, as well as gear for 70 NCAA Division I schools.
Although the chain has carried sporting team apparel for more than two years, the chain hasn’t attempted anything like the Super Fan Nation effort. The unspecific marketing budget is in the millions, and many stores will host events like cheerleading squad performances, mascot appearances and student bands, all from the schools lending their names to Old Navy’s clothing line.
The push is a lot bolder than what Gap is attempting to do with its titular chain of stores to recapture consumer attention. Total sales across the companies changed have declined for five years straight. The company reported its quarterly earnings Aug. 4, and almost all of its chains reported either flat or lower sales year-on-year. While Old Navy’s sales for the quarter were flat overall, July sales declined 3% compared to 7% growth in July 2010. The Super Fan Nation campaign, right in time for both a much-anticipated football season as well as back-to-school sales, should be the booster Gap needs for this particular chain.
The question now, though, is whether the Super Fan Nation blitz represents a larger realignment for Old Navy. According to Quantcast, 64% of Old Navy’s customers are women, and 46% are between the ages of 18 and 34. According to Scarborough Sports Marketing, approximately 60% of the NFL’s audience is male. Is Gap trying to capitalize on an untapped well of female consumers hungry to buy sports apparel in a familiar environment? Or is it trying to bring in a new male consumer? Or both? We’ll find out when Gap reports its fourth quarter earnings in early 2012.
As of this writing, Anthony John Agnello did not own a position in any of the stocks named here. Follow him on Twitter at @ajohnagnello and become a fan of InvestorPlace on Facebook.
