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Gap: From cultural storytelling to disciplined execution

Under CEO Richard Dickson’s leadership, Gap Inc. is in the middle of a major reinvigoration. With a portfolio of iconic brands, Old Navy, Gap, Banana Republic, and Athleta, the nearly $15 billion company with ~90,000 employees is combining brand strength, disciplined execution, and seamless omnichannel experiences to win back relevance and customer loyalty.

Gap ended fiscal 2024 with $15.1 billion in net sales, delivering positive comparable sales every quarter and gaining market share across all four banners. The focus is clear: better products, clearer value, and frictionless experiences that customers notice in their everyday shopping journeys.

The reinvigoration blueprint centers on strengthening each brand’s identity and purpose, delivering trend-right assortments driven by customer insights, and reigniting culturally relevant storytelling. Marketing is shifting away from heavy discounting toward innovative media and compelling creative designed to restore Gap’s cultural voice while improving efficiency. Execution excellence, pricing architecture, inventory discipline, and omnichannel consistency tie it all together, turning brand relevance into sustained growth.

Portfolio at a Glance

Gap Inc. operates as a multi-brand platform anchored by Old Navy, Gap, Banana Republic, and Athleta. The strategy:

  • Revitalize each brand’s unique DNA while leveraging shared strengths in sourcing, loyalty, and digital commerce.
  • 2,506 company-operated stores and 1,063 franchise locations (3,603 globally across ~40 countries).
  • Old Navy leads in family value, Banana Republic in elevated style, Athleta in activewear, and Gap in casual lifestyle.

Customer Engine: One Membership, Four Brands

The unified loyalty program simplifies rewards while maximizing lifetime value:

  • Members earn and redeem points seamlessly across all four brands.
  • Tiers and card benefits drive frequent, cross-brand shopping.
  • Centralized infrastructure delivers personalization and transparent rewards.
  • Launched in the U.S. (2021), expanded to Canada, fueling cross-shop behaviors at scale.

Omnichannel Scale

Digital and physical touchpoints are fully integrated:

  • 40% of sales in Q3 FY2024 came from online.
  • “Buy anywhere, fulfill anywhere” is the standard, ensuring consistency across channels.
  • Store remodels and digital upgrades are enhancing the customer experience.
  • Storytelling and assortment discipline are creating traffic across both stores and digital platforms.

Technology Backbone

Gap Inc. is aggressively investing in tech partnerships and innovation to accelerate transformation:

  • Microsoft: primary cloud provider; migrating apps to Azure and collaboration via Microsoft 365.
  • Oracle: back-office infrastructure partner.
  • Infor Nexus: supply chain visibility and collaboration.
  • CB4 (AI startup acquisition): machine learning for merchandising and in-store workflows.
  • RFID deployment in over 150 Old Navy stores: achieving real-time inventory visibility and enhanced staff efficiency.

Marketing and Storytelling

Fabiola Torres, a former PepsiCo executive, has joined as Global CMO, bringing a fresh vision to Gap’s marketing. The focus:

  • Allocating resources to diverse channels for brand health and engagement.
  • Personalized communication via in-house customer database, email, and digital media.
  • Design-led drops, creator-led campaigns, and culturally relevant storytelling to reignite brand relevance.

Brand Takeaway

Gap Inc.’s strategy is not just about clothes; it’s about connection, consistency, and cultural presence. A stronger identity, sharper assortments, and smarter media execution are positioning Gap to thrive in a competitive retail landscape.

The big question is: Will the combination of creative storytelling, omnichannel consistency, and AI-powered retail put Gap back at the center of cultural style conversations?

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Keith Nicks is EVP and Chief Digital & Commercial Officer for Ahold Delhaize USA, overseeing
omnichannel marketing, retail media, and e-commerce for U.S. brands. Tim Bork is the Chief Commercial
Officer for Ahold Delhaize Europe & Indonesia, focusing on local brands and responsible for growth,
including marketing and customer experience.
With nearly €96 billion in projected 2025 revenue, Ahold Delhaize ranks among the top 10 global
retailers, operating over 6,700 stores across multiple formats, including Albert Heijn, Delhaize, Food Lion,
Giant, Hannaford, and Stop & Shop.
6,700 stores powered by one procurement platform – a scale that makes others jealous.
For customers, Ahold isn’t just a grocery retailer; it’s a trusted lifestyle partner that combines the
intimacy of local shopping with the innovation and value of global retail leadership.
Ahold’s brands, such as Albert Heijn, Stop & Shop, and Giant, represent 37 years of average customer
relationships—customers don’t just shop there; they grow up with these brands, creating emotional
connections that transcend transactions.
After gaining thirty million loyalty members, Ahold demonstrated that personalization consistently
outperforms promotion.
BrandSensitize™ research shows that Ahold Delhaize operates with a decentralized marketing and brand
building approach, where marketing functions are embedded within:

  • Brand-specific leadership (each local brand has its own marketing teams.
  • Regional commercial officers who oversee marketing alongside broader commercial
    responsibilities.
  • Digital and omnichannel specialists who handle modern marketing channels.
    Ahold Delhaize’s Brand Building Initiatives:
    Sustainability campaign: €50M investment reached 10M consumers, delivering a 20% boost in
    sustainable product sales and generating €400M in revenue.
    Digital Marketing: €150M digital budget achieved 25% higher engagement, 2.6% click-through rates (vs
    1.9% industry standard), and built 500K+ social media following.
    Loyalty Program: 30M members across brands with 85% customer penetration, driving 75% of total sales
    and contributing €1B annually—10% better retention than competitors.

Strategic Brand Partnerships: 100+ collaborative campaigns with CPG brands, including Coca-Cola,
generated €600M in additional revenue through joint promotions.
Omnichannel Investment: A $1 billion price investment initiative, combined with AI-powered
personalization, aims to achieve an 80% loyalty sales penetration by 2028.
Strategic marketing drives measurable business results—from sustainability messaging to digital-first
loyalty programs, Ahold Delhaize demonstrates that well-executed brand-building campaigns deliver
both customer engagement and bottom-line growth on a global scale.
Ahold Delhaize’s Strategic Technology Partnerships:

  • W23 Global VC Fund: $125M investment with Tesco, Woolworths & others backing AI startups
    like Harmonya & Protex AI
  • Zycus Partnership: Source-to-Pay suite powering procurement across 6,700+ stores globally
  • Hanshow Technology: Electronic shelf labels + innovation labs across all European locations.
  • Inmar Intelligence: $141M in customer savings delivered through personalized digital coupons.
  • DoorDash Collaboration: Tripled order volumes through enhanced last-mile delivery integration.
  • Internal AI Innovation: MaxiGPT, LionGPT & Albot assistants deployed across the Serbian,
    Belgian, and Czech markets.
  • New Tech Studio: AD/01 in Bucharest targeting 250+ tech talents for digital acceleration.
    Zycus has licensed its comprehensive Source-to-Pay suite to Ahold Delhaize, including eSourcing,
    Contract Lifecycle Management (CLM), and Supplier Management platforms.
    TCS’s relationship with Ahold Delhaize marks a mature, strategic partnership focused on digital
    transformation and supply chain technology.
    Wipro partnered with Capgemini as one of the most significant retail transformation initiatives in the
    world at Ahold USA.
    Capgemini powers Ahold Delhaize’s end-to-end transformation, developing blockchain technology use
    cases for Ahold Delhaize’s supply chain and leveraging its expertise in business transformation, as well as
    its understanding of Ahold’s industry and operations.
    Traditional retailers, equipped with AI and Robotics, will surpass pure digital players by 2030.
    The key is to position Ahold not as just another retail success story, but as the company that has
    rewritten the rules of digital transformation for every traditional business watching.