The retailer Sears was too big to fail. Founded in 1892, it became America’s largest store chain 90 years later and then began to fall apart. Now, for all intents and purposes, Sears does not exist. There have been several retailers that have followed a path similar to Sears. Its stablemate Kmart belongs on the list. So does J.C. Penney. All have done poorly picking merchandise, designing stores, pricing inventory and moving online. It is often said that Amazon has caused 100% of the damage done. That is naive. Management counts.
[in-text-ad]
Gap started to fall apart years ago. After occasional recoveries, it began what is probably its last leg downward. Starting in 1969, it became another of America’s legendary store chain successes. For years it was called America’s largest “specialty retailer,” which essentially means it inhabited the clothing retail niche.
Gap’s earnings forecast shows how desperate its situation has become. One of the first signs of trouble is the ouster of the head of the Old Navy division. As Nancy Green departs, Gap CEO Sonia Syngal will temporarily oversee the division — never a good sign.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
