What The Gap Can Learn From H&M’s Recovery Story

The Gap (NYSE: GPS), the trend-setting store for the cool crowd in the 80s and 90s, has been losing ground for a while now. Reasons are many, and some, like the decline in traffic at malls -- where many of the stores are located -- can't be controlled. But there is one area where The Gap can make positive changes, and it should use rival Hennes & Mauritz (OTC: HNNMY), better known as H&M, as its guide.

Image source: Getty Images.

In 2019, The Gap lost its CEO, reported declining sales, and ended the year with its shares down 31%. At the same time, shares of H&M, its trendier European peer, climbed 46%, and the retailer reported sales growth. But things weren't always so easy for H&M, which struggled with earnings in prior years until it renewed its strategy and online look. The Gap could benefit by applying some of H&M's tactics to target today's audience where it wants to be: online.

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Source Fool.com