Online Retail :: GAP Finally Consolidates All Four Stores Online
Tuesday 24 June 2008 à 02:07 by Fashion-Fox
In a move to make online retailing easier for fans of the GAP and its other three stores, Banana Republic, Old Navy, and Piperlime, the retail fixture has finally consolidated its online shopping cart.
The hope is that the move will encourage cross-selling between the sites and therefore encourage an increase in sales, I’m curious to know what those that shop at Old Navy might find appealing at Banana Republic.
Let’s face it, if you’re shopping at Old Navy, it’s probably because you can’t swallow spending $68 on a pair of jeans at the GAP; why would you even think of shopping at Banana Republic?
We’ll have to see where this one goes. While I think it will be convenient for shoppers looking to combine a shopping cart and pay just one shipping fee, I’m not sure it will see much use.
Actually, one thing we’ve seen in luxury goods is that designers need to have different articles in different price points. Not everyone can afford all the pieces in a collection, but those who can’t will either set money aside for a piece or will simply buy some item at the lower price point. A classic example is the Coach bag line: they have bags in many different sizes and looks, but they also sell key fobs and coin purses, etc. The trend nowadays, at least according to Women’s World Daily, is that shoppers in this economy are doing exactly this. The key fob purchase is proving to be the entry into the luxury line.
So, to circle back to the GAP situation, I actually think it’s a smart sales move to put all of these items in the same shopping cart, because it provides fodder for the impulse buyer, as well as for the “upsell.” In fact, I suspect that it will provide an outlet for the instant gratification needs of less-moneyed customers, because if they can’t afford the Banana Republic jeans, they can buy the GAP ones, even if they normally only buy the Old Navy jeans. I think the effect will be that low-end buyers will “settle” for the medium-range goods because they can’t afford the high-end goods today.
But, you’re right: it all remains to be seen.