They should close 200 or even 500 stores and keep the very best people from each store, redeploying them to their best stores. They should invest in those great stores, invest in design, in targeted marketing. … [T]hey ought to avoid the nickel and diming and go back to what made them great in the first place.
Gap’s board might also consider revisiting its manufacturing strategy. Product cycles are getting shorter and shorter in the fashion industry, and domestic producers like American Apparel can react much more quickly to changing tastes, with less inventory at risk.