January 28, 2021
2020. A year that will go down in history—defined by life-altering, unprecedented events. A year of thinking fast, taking risks, and putting our teams, customers, and communities at the center of everything we do.
As we wrap up our fiscal year, we’re taking a moment to reflect on 2020—it asked big things of us, required us to dig a little deeper and reset our normal. Our business fundamentally evolved, and we couldn’t be prouder of all that we’ve accomplished amidst so many challenges.
And, as we look ahead, we want to take a moment to pause, to celebrate the silver linings that—despite a year of immense change and uncertainty—have never been more important.
At our Investor Meeting, we unveiled the 2023 Power Plan, our new strategic 3-year plan, and shared our company purpose, Inclusive, by Design. Through the Power of our Brands, the Power of our Portfolio, and the Power of our Platform, our foundation has never been stronger.
This past year, our brands’ creative campaigns and broadcast spots were inspired by their values and vision for the future. WE Holidayed, Loved the Present, Dreamed the Future and we celebrated how Women Run It All. Our brands shared a distinct and ownable point of view, meeting our customers in the moment, thanks to our customer-obsessed teams.
Our powerful lifestyle brands are creating enduring relationships and infusing the voice of the customer at every turn to create product and experiences they need and want. This is showing up in our Net Promoter Score, which was up 13 points last quarter across all channels from Q3 last year.
Our design teams launched into new categories, embracing all shapes and sizes from 00-26, and even finding ways to make those awkward tween and teen years feel cool again.
Pivoting to make sure our customers were safe and stylish throughout the year, our mask collections stood above the rest. Born from major innovation, they were best-sellers, and kept even the littlest critters looking adorable all year long while representing 4% of sales across the portfolio at the end of Q3. Not too shabby for a brand-new business.
Throughout the historic U.S. election cycle, we did our part to encourage people to make sure their voices were heard. We Powered the Polls, paying our employees to serve on election day, amplified civic engagement through our #GapIncVotes campaign, and made sure our customers had what they need to vote in style.
Between franchise openings—including Gap’s locations in Barcelona and Johannesburg—and Banana Republic’s new market entry of Costa Rica and the Caribbean to Old Navy’s continued expansion in Canada and the U.S. (all the way from Edmonton to Kalamazoo), this year welcomed new growth. Gap Inc. also appointed IMG to deliver cross-category product extensions of our incredible brands.
In June, we outlined our commitments to “Create for All, with All.” Our leaders shared the ways we’re working to be a force for good, driving systemic change both in and outside our walls, designing with inclusivity in mind, and enabling a culture of belonging for our teams, our customers, and our communities. And we have some promising numbers to show for it: diverse representation within our Rotational Management Program (RMP) increased 39% between 2018 and 2021. Specifically, Black and Latinx representation within the 2021 incoming class rose 28%.
Supporting and amplifying new voices is what we believe in, and our continued partnership with Harlem’s Fashion Row put the spotlight on emerging Black designers. While we were unable to gather in person, there was no shortage of enthusiasm for our virtual retreats and jaw-dropping collaborations.
We continue to lead on water stewardship, and achieved our 2020 goal to save ten billion liters of water—two billion of which was saved through the innovative Arvind Water Partnership. Sustainability also played a strong role in both the highly-popular Gap Teen Collection—which incorporates at least one sustainability element in all product—as well as the “Be the Future” campaign with GapKids, featuring four youth activists for climate justice. And we made sure to keep the good going by partnering with Textile Exchange to gift our Preferred Fibers Toolkit to the apparel industry.
Online growth soared, led by shoppers clicking “add to cart” 95% more than the previous year. We saw a 175% increase in customer package deliveries, thanks to over seven million new customers who joined our brands online. Now that’s what we call a virtual hello! 👋
We launched new ways of doing business, making shopping safe and accessible from the comfort of home with Buy Online, Pick Up in Store (BOPIS), to the comfort of your car, with Curbside Pickup.
Amidst the pandemic we launched a world-class distribution center two months ahead of schedule. Built within our existing Groveport, OH campus, the facility is designed to be Gap Inc.'s highest capacity fulfillment center with integrated automation and robotics.
Loyalty is in our DNA, and this past year, we made it even easier to stay in the family. Our new loyalty program lets customers earn and redeem points across our core brands. Now that’s what we call happy shopping!
Our commitment to serving our communities is unwavering and we’re able to use our business as a force for good though the size and scale across the portfolio, our powerful platform and delivering strong business results. In response to COVID-19, the needs of our local, national, and international partners have been unprecedented, and we stand committed to providing financial and physical resources worldwide. We also celebrated extraordinary milestones supporting women and girls in our P.A.C.E. program, and providing jobs and mentorship to young people through our This Way ONward program, now in its thirteenth year.
Creativity and purpose inspire us and getting results fuels us. While 2020 certainly posed its challenges, it also motivated our teams to Learn Fast, Create with Audacity, and to Do the Right Thing. As we welcome a new fiscal year, we’re taking our learnings, our lessons, and our silver linings with us—knowing that while this year pushed us, it also transformed us, and in our 50+ years, evolution is something we always welcome. Here’s to a bright, healthy New Year, from all of us at Gap Inc.
—Sonia, Katrina, Nancy, Mark, Sandra, MB, Asheesh, Shawn, John, Sally, Julie, and Sheila