Gap Inc. just announced that each of its core brands–Banana Republic, Old Navy and Gap– will be headed by a single executive internationally.The move is important for Gap, which is currently in the middle of the retail turnaround of the year.
Under the current structure, Gap operates its domestic and international businesses separately. But in a world of online merchandising and global campaigns, it makes sense to unite the brands, Dorothy Lakner, an analyst at Caris & Co., said in a note to clients.
The move also increases the chances that its products will improve overseas, which is one of the only things currently holding Gap back, according to Lakner.
Product design across the board was a big problem for Gap’s brands last year, when the retailer’s sales slid.
But since then, Gap made management changes and have consistently put out good designs. The holiday season is looking good as well, Lakner said.
The management changes increase the chance that Gap will continue on an upward trajectory.
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