US specialty retailer Gap’s same store sales for the fourth quarter of its 2016 fiscal year were up two per cent compared with a decline of seven per cent in the same quarter last. Net sales increased one per cent in the fourth quarter of 2016.
The quarter included good business from the crucial holiday season. Same store sales were up two per cent for the holiday months of November and December. Comparative sales for its Old Navy global division increased 12 per cent during the holidays. Same store sales for its Gap Global division experienced an uptick of one per cent. The Banana Republic global division reported a decline of seven per cent.
The apparel and accessories retailer is struggling to attract shoppers to its Banana Republic stores. It has been controlling inventories and trying to replicate the success of its low-end Old Navy brand at its Gap and Banana Republic chains. Gap has been trying to reduce promotions and sell more merchandise at full price. However, shoppers are increasingly looking for deeper discounts. Chic and trendy clothes at lower prices from off-price, online and fast-fashion retailers such as H&M, Forever 21 and Inditex’s Zara are also luring shoppers away.