Gap Inc. History

Gap was founded in 1969 with a simple idea—make it easier to find a pair of jeans that fit with a commitment to do more.

By the end of the 1970’s Gap had created its own line of apparel which it began selling at its stores.

In 1971, Gap established its corporate headquarters in Burlingame, California with four employees.

Such dependence on a single supplier had obvious dangers, however, and around 1973 The Gap began marketing several labels of its own, as well as national brands other than Levi's.

In 1974, Gap began to sell private label merchandise.

These proved crucial to the company's short- and long-term health; by 1975 Gap stores generated $100 million in net sales.

With the brand recognition that the Gap store achieved, more and more stores opened all across the United States By the year 1976, the Gap store had exceeded sales of $100 million.

Rather than wage endless litigation, The Gap settled the suits in 1979 for a total of $5.8 million, or 40 cents per share, and did its best to mend its frayed relations with Wall Street.

After a stint at Macy's, he became president of AnnTaylor in 1980, where his work caught the eye of Donald Fisher, who was contemplating the future of The Gap.

In 1982, Fisher began expanding the size of the typical Gap store, making it up to three times larger.

Drexler accepted the job as president at the end of 1983 (sales $480 million) and was given a block of stock that would make him one of the country's wealthiest retail executives.

Drexler's revolution at The Gap cost a good deal of money, and financial results for 1984 were poor, with profits down 43 percent to $12.2 million.

In 1986, Drexler saw another need the Gap could fill: providing durable clothes for children.

Created in 1987, the same year the company broke $1 billion in sales, Hemisphere offered elegant fashions but soon ran afoul of a severe recession.

In 1988, a series of black-and-white magazine ads featured celebrities wearing Gap clothing along with other items from their wardrobe.

In 1990, as Banana Republic searched for secure footing, GapKids prospered and launched a new venture, babyGap.

To Drexler, the store's old lines were "trendy but not tasteful," as he told the New York Times in 1991.

In 1992, Fisher told Business Week that the first Gap did so well, "you couldn't get into the store."

In 1994, Gap, Inc., added another new division, Old Navy.

The first Japanese store opened in 1995.

As such, he retooled The Gap's image in 1997, emphasizing a return to simplicity and the company's most basic offerings--pocket tee's, jeans, and khakis.

In 1998, it won several awards for its "Khakis Swing" commercial, and became known for its use of celebrities and whimsy themes.

In 1999, 570 new stores were added to the company's arsenal as net earnings exceeded $1.1 billion.

Disaster struck in 2001 when the company posted a $7.7 million loss. "Simply put," wrote Anne Kingston of the National Post, "The Gap has lost its groove.

In 2012 it had revenue of $15 billion out of which net profits were $1 billion.

The company announced it would open its first stores in Brazil in the Fall of 2013.

In January 2015, Gap Inc. announced plans to close their subsidiary Piperlime in order to focus on their core brands.

In September 2018, Gap Inc. began publicizing Hill City, a men's athletic apparel brand that launched in October 2018.

However, just a few months later, the brand posted its first sales decline in three years in the second quarter of 2019, with a subsequent drop in the third quarter.

In June 2020, Gap Inc. announced its collaboration with Kanye West's Yeezy Brand.

In September 2021, Gap Inc. cut the ribbon for the $41.7 million facility expansion in Gallatin, TN. In addition to hiring 1,100 employees to meet the demands of market share growth and peak season, Gap partnered with AHS to implement an automated order fulfillment system.