Gap, Other Stores Prospect Market for Female Baby Boomers
Gap Inc. earns millions of dollars manufacturing and retailing clothing for young adults with its Gap, Banana Republic and Old Navy chains. But the San Francisco–based company has now set its sights on women age 35 and older, according to Gap President Paul Pressler.
On April 21, Pressler announced the launch of Gap’s new concept store, Forth & Towne, which will serve the fashion needs of baby boomer women. “Launching the brand Forth & Towne represents an important long-term growth opportunity for Gap Inc.,” he said.
Gap’s new chain will open four stores in Fall 2005: three in Chicago and one in New York. According to the 8-K document that Gap filed with the Securities and Exchange Commission, Forth & Towne could open more than 30 stores by 2007.
More companies have been looking to serve this market because women 35 and older make up one of the top markets for apparel, according to NPD Group Inc., based in Port Washington, N.Y. The market research company noted that women in the age range of 35 to 54 spent $31.11 billion on apparel in the 12 months ended February, up 4.5 percent from one year earlier.
Competition to dress these women has been getting heated. Target Corp. introduced the Linden Hill label, geared toward baby boomer women, in 2004. The Gymboree Corp. debuted its boomer-focused store, Janeville, the same year. J. Jill and Talbots have long enjoyed success selling fashion to baby boomer women. But, according to analysts, the retailer with the greatest success in this market is Fort Myers, Fla.–based Chico’s FAS Inc., which earned double-digit growth over the past year. Chico’s comparative-store sales increased 26 percent in March 2005.
Retailers hoping to emulate Chico’s success might face a big learning curve, said Diane Kangas, a researcher who studies the demographic of baby boomer women.
“They have not adjusted themselves to making clothes that fit boomers yet,” said Kangas, senior vice president at Warren, Mich.–based Campbell Ewald. “They’re making them too young, or they’re making them too old. They’re not finding a nice niche in the middle for boomers. Until they do that, they won’t succeed.” —Andrew Asch
