“To not be considering Amazon and others would be — in my view — delusional,” Peck said at the company’s annual investor meeting Tuesday in San Francisco. “We are always considering all of the opportunities beyond our traditional mix of channels and stores. Amazon is certainly one, and there are others as well.”
Peck, 60, made the remarks after he was asked whether the company might tap Amazon to market products to consumers. Gap has been struggling to reverse a decline in same-store sales, hurt by sluggish traffic at many malls and a consumer shift away from apparel spending.
As Amazon entices more clothing shoppers, it’s poised to become the No. 1 US apparel retailer by next year, according to Cowen & Co. The flow of dollars online has taken a toll on department stores and other traditional retailers. Macy’s Inc. and Nordstrom Inc. both gave disappointing forecasts last week, dragging down stocks across the industry.
Gap shares have lost 30 percent of their value this year, including a 1.4 percent decline on Tuesday.
Peck, who took the reins last year, is coping with a slower-than-expected turnaround. He had predicted signs of sales rebounding at its Gap and Banana Republic chains this spring. Instead, sluggish store traffic continued into April. And the Old Navy business, which had been a bright spot for the company, fared especially poorly last month. Comparable sales at that chain plunged 10 percent, compared with the 2.6 percent increase analysts had estimated.
The company also said earlier this month it’s evaluating its Banana Republic and Old Navy chains to find ways to be more efficient, especially outside of North America.
By Lindsey Rupp; editors: Nick Turner and Mark Schoifet.