Gap Gets Aggressive Prepping for Holiday Sales

November 16th, 2011 by Trefis Team
-0.79%
Downside
21.35
Market
21.18
Trefis
GPS: Gap logo
GPS
Gap
Gap Inc.

Source: Shop Yourself Social

While the last three quarters may have been disappointing for Gap Inc. (NYSE:GPS), the company has made its aggressive intent clear for the next quarter with the announcement that its 1,000 stores will remain open on Thanksgiving. To top it off the company has also kick-started its holiday campaign site www.shopyourselfsocial.com and is also providing mobile shopping discounts to woo growing smartphone users base. [1] The announcement came just a day after the launch of I Want Candy holiday campaign by GapKids, which is aimed at increasing Childrenwear business during the holidays. Gap is a leading apparel specialty retailer competing with the likes of Abercrombie & Fitch (NYSE:ANF), Aeropostale (NYSE:ARO) and American Eagle Outfitters (NYSE:AEO).

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See our complete analysis for Gap Inc. here

Gap is going all out for this holiday season

Gap is leaving no stone unturned to convert this holiday season into a bumper one. The opening of 1,000 stores on Thanksgiving will definitely provide crucial edge over its competitors, which are planning midnight openings that night. The company is also running aggressive holiday exclusive marketing campaigns such as launch of its holiday special site and extension of its mobile shopping experience with the launch of  programs for Banana Republic (BR mobile 4U) and Old Navy (Old Navy 4U) in addition to Gap brands. We believe that the extension of mobile shopping will benefit the company as Gap’s target customers contribute a major chunk to smartphone users in United States. Additionally holiday campaigns such as GapKid’s I Want Candy campaign through Gap’s Facebook page and YouTube channel will also benefit the company during the holidays, considering the clout of Gap’s Facebook and YouTube fan base.

Our price estimate for Gap stands at $26.76, which is  nearly 30% above the current market price.

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Notes:
  1. Gap announce opening of nearly 100 stores on Thanksgiving, Source: Gap IR [↩]