E-commerce remains a bright spot for Gap

Although total sales continue to decline, multi-channel clothing retailer Gap Inc. posted a solid gain in first quarter e-commerce sales. For Q1 Gap grew its web sales year-over-year 15.2% to $159 million from $138 million. At the same time, the retailer’s Q1 total sales declined 5.1% to $3.4 billion from Q1 2005 total sales of $3.6 billion.

OldNavy.com continues to be the biggest single e-commerce channel for Gap, No. 24 in the Internet Retailer Top 500 Guide to Retail Web Sites. For the first quarter, OldNavy.com posted sales of $73 million, an increase of 17.4% from revenue of $62 million in Q1 2005. Gap’s other two e-commerce sites, Gap.com and BananaRepublic.com, also posted decent gains. In Q1 Gap.com had web sales of $59 million, up 7.7% from $55 million in Q1 2005; BananaRepublic.com had Q1 e-commerce revenue of $26 million, an increase of 23% from $21 million the prior year.

Gap is pouring substantial time and energy into its web channel. In May the company announced plans to launch a new online footwear business through its e-commerce division, Gap Inc. Direct, and feature leading brands for women, men and children. The new business is expected to go online in time for the 2006 holiday season with a broad assortment of footwear offerings from designer to casual brands, the company says.