Gap has suffered from a decline in store traffic. The company will instead focus on areas where customers are actually shopping - off-price locations and online. Gap was able to deliver positive comps for the first time in 15 quarters.

Gap intends to focus on growth brands, such as Hollister and Athleta, while closing down about 10 per cent of Gap and Banana Republic stores from lower-productivity locations. This move follows from the decline in demand for the company's more established brands in favor of its younger chains.

The US active wear market is a $40 billion behemoth, with an eight per cent average annual growth rate, representing one of the highest growth areas in the apparel market. Gap’s Athleta brand is solely focused on this space and the company provides athletic wear in its other segments as well. For the company as a whole, this segment contributes over a billion dollars in revenues, while Athleta’s growth continues to outpace the market. The company has taken a number of initiatives to make the supply chain responsive, and as a result, 50 per cent of the assortment in the business is on a pipeline of 6 to 11 weeks.