Retailers shift their ad spending from TV, radio and print ads to digital ads.
For the third quarter, Gap reported total online sales of $134 million, a decrease of 9.5% from Q3 2004. For the first nine months of 2005, Gap reported web sales of $379 million, down 1% from January through September 2004.
Gap Inc.’s e-commerce sales dipped in the third quarter but not nearly as much some retail analysts predicted because of the down time and performance problems Gap incurred while redesigning and launching its trio of web sites.
For the third quarter, Gap, No. 22 in the Internet Retailer Top 400 Guide to Retail Web Sites, reported total online sales of $134 million, a decrease of 9.5% from web sales of $148 million in Q3 2004. For the first nine months of 2005, Gap reported web sales of $379 million, down 1% from e-commerce sales of $382 million for January through September 2004.
Outside observers had speculated that when Gap experienced problems relaunching its sites in August and September, the company lost tens of millions of dollars in sales.
In the third quarter the web accounted for 4% of total sales of $3.7 billion compared to 4% on total sales of $4 billion for the same time in 2004. For January through September, web sales were 3% of total sales of $11.2 billion compared to the first nine months of 2004 when e-commerce represented 3% of total sales of $11.4 billion.
OldNavy.com was Gap’s biggest online e-commerce site in the third quarter based on sales of $62 million, down 4.6% from sales of $65 million in Q3 2004. For the third quarter Gap.com and BananaRepublic.com also posted decreases. Gap.com sales decreased 13.3% to $52 million from $60 million in Q3 2004. BananaRepublic.com posted e-commerce sales of $20 million, a drop of 13% from web sales of $23 million from the same period in 2004.