Gap Inc is trying to get its mojo back under the leadership of CEO Sonia Syngal. At an investor relations call on October 22, the casualwear retailer outlined a bold new plan to re-engerize its brands. Not surprisingly, the emphasis was on e-commerce. The big lesson for most brands during the recent pandemic was having a thriving online retail operation is no longer an 'add on'. Now it's a life line. Just like buyers need to hedge risk by diversifying sourcing, retailers have learned that they need to diversify sales channels. Gap is also placing a lot of effort to promote inclusiveness, with more attention placed on developing an already fairly extensive plus-size offering. Stores still matter, but not when they are in malls. Gap also seems to be hitting the 'pause' button on its international presence, preferring to get things back on track in its home market. Here's a summary of Gap's new 'Power Plan 2023': <h3><strong>Power Plan 2023</strong></h3> <strong>Gap</strong> <ul> <li>The brand will focus on popular denim, activewear and fleece)</li> <li>Focus on partnerships/collabs</li> </ul> <em>"Gap will become a digitally-led brand", according to CEO Sonia Syngal.</em> <strong>Now:</strong> 24% of sales are made online. <strong> By 2023:</strong> 80% of revenue will come from online. Moving out of mall-based stores (closing 30% by 2023/early 24) 80% of stores will be outside of malls by 2023 <strong>Old Navy</strong> <strong>Now:</strong> $8 billion in revenue. <strong>Target:</strong> $10 billion by 2023. <ul> <li>Loyalty programs will be core</li> <li>Omni-channel is now essential - click n’ collect, curb side, online</li> <li>Store base has been highly profitable - 75% in strip malls, outlet and lifestyle locations</li> </ul> <em>“Stores matter. They remain an important under pinning of our brand." - Nancy Green, pres. & CEO, Old Navy</em> <ul> <li>Target smaller markets for new stores</li> <li>30-40 new stores /yr. </li> <li>Channels need to support, not canabalize each other</li> </ul> <strong>Athleta</strong> <ul> <li><strong>Now:</strong> $1 billion. <strong>Target:</strong> $2 billion by 2023</li> <li>Open 20-30 stores annually </li> <li>Expand overseas</li> </ul> <strong>Now:</strong> Old Navy and Athlete account for 55% of Gap Inc’s total revenue <strong>By 2023:</strong> The two brands will make up 70% of total company sales