Gap tries on shoe business
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Gap tries on shoe business
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SCOTT JAGOW: There’s a new place to buy shoes online today. Gap launched a website called Piperlime.com. It’s testing it out right now. A company spokesman said clothing and shoes go together like peas and carrots. Dan Grech reports.
DAN GRECH: Piperlime.com seems like a good fit for the clothing giant.
It’ll have less selection than rivals Zappos and Shoemall.com but the marquee power of the Gap brand.
Still, retail investment banker Howard Davidowitz says that’s beside the point.
HOWARD DAVIDOWITZ: “Let’s say it works better than anybody expected right? It’s a giant home run. What will it mean for the Gap’s bottom line in the next four years? Very little.”
Gap’s in a huge hole. Its same store sales have declined for two straight years.
DAVIDOWITZ:“Gap isn’t cool anymore. So in order to get those customers back, Gap has gotta reorganize their merchandizing, reorganize their stores to become cool again to all the consumers they sell to.”
That’s the gap that Davidowitz says the retailer needs to close.
Piperlime.com’s launch is November 1.
I’m Dan Grech for Marketplace.
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