Global pandemic have emerged uncertainties in business environment. We are witnessing many firms shut down. But there is also another side. Some businesses used the threat to flourish. Pivots are of solutions adopted by Gap Inc. Using this strategy got 3.5 million users amid global pandemic. Today at Niorise we are sharing a new example of reaction to business challenges by illustrating Gap’s pivot strategy.

 

A New Sign of Pivot Strategy

Gap Inc., a garment company, transformed its supply chain amid global pandemic to produce face masks. And it really worked.

The business said on Thursday, as it posted quarterly reports, that it had generated $130 million from its face masks. This covers sales to people and, in considerable part, to companies. The City of New York, the State of California and Kaiser Permanente are some of its customers. Over the quarter ended August 1, Gap’s total sales dropped by about 18 percent to $3.28 billion from $4 billion last year. Its online sales increased by 95 percent. But the figures are still downward by the performance of its stores. Because they had been forced to close for part of the quarter.

Gap's CEO Sonia Syngal (Leader of Gap's Pivot on masks) at Fortune conference "Most Powerful Women 2019"/ Stuart Isett
Gap’s CEO Sonia Syngal at Fortune conference “Most Powerful Women 2019″/ Stuart Isett

Gap’s masks are available in shops and online in different designs and colors under the brands like Banana Republic and Old Nav.

 

Going Online is Still a Promising Solution

The company is actually Google’s No. 1 search result for “face mask style guide”, said CEO Sonia Syngal. Gap is “the perfect illustration of how we want to function as a society”, She added.

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gap's pivot on masks and keyword search results
A sign of gap’s pivot in Google search result

There were shortages in supply of face masks, early in the covid-19 outbreak. However, Some retailers like Anthropologie and Madewell were looking for opportunities to engage, particularly when the advantages of wearing face coverings became clearer. Additionally, Many cities and states have also adopted mask wearing rules to stop corona virus spread, which can be transferred from person to person.

“We nearly doubled our e-commerce business, with approximately 50% online penetration, demonstrating our ability to pivot to a digitally-led culture”, Sonia Syngal

Gap stock rose by around 4 percent in after-hours Thursday trade. Because the company posted revenue higher than planned and lower than anticipated losses in its second quarter of fiscal years. To date, the stock has fallen by about 1 percent.

The gap’s pivot strategy looks successful which brought 3.5 million new consumers for Gap, up more than 165% from last year ago.

1 COMMENT

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