It's Not Yet Time to Fall Into the Gap

In a recent report, Kent writes the color palette of the women's line "did not feature the bright sherbet hues that are expected to be popular; instead it was heavy on faded colors like light green, yellow, and gray." She also believes Old Navy has the wrong product mix, missing opportunities in athletic-inspired apparel.

That's no surprise to Stevan Buxbaum of consulting firm Buxbaum Group in Calabasas, Calif. He points out that it takes roughly 18 months to turn over the merchandise pipeline.

Under recently ousted CEO Paul Pressler, same-store sales figures were solid for the first year and a half. Shortly thereafter, the company hit a rough patch in which same-store sales failed to grow in 27 of the next 28 months. So even though new Gap stores president Marka Hansen, the former head of Banana Republic, is expected to improve the merchandising, her impact may not be felt for some time.

But it's not just the clothes that are the problem. Buxbaum says the whole shopping experience at Gap needs to be reworked.

"Gap stores still feel like 1992. They need to bring it into to the 21st century," he says.

Buxbaum suggests that Gap get more in line with Abercrombie & Fitch from a store-design standpoint. "Walking into an Abercrombie is like walking into a night club," he says. "Gap is still behind the curve on shopping experience, even if they get the merchandise right."