Company Overview

Born in 1969 by heirs to the Levi’s fortune, Donald and Doris Fisher, Gap catered to the younger side of the generation gap with a retail outlet selling jeans to the youth of the nation. Initially loyal to the family business, Gap sold primarily Levi’s jeans in its stores. The Fisher Company still has a tight hold on the company, owning 20 percent of the firm and holding three seats on the board of directors. The retailer underwent a metamorphosis in 1983 when it hired Mickey Drexler as president of the Gap division. Drexler became CEO of the company in 1995 and reigned until 2002. Today, the company’s wardrobe consists of not only Gap, but also the up-market Banana Republic (purchased in 1983), Gap Kids (launched 1985), discounter Old Navy (launched 1994), and Gap Body (launched 1998). The company started selling online in 1997 through Gap.com. Gap’s empire of more than 3,100-plus stores stretches across the United States, Canada, France, the United Kingdom, and Japan.

In its effort to make its clothing affordable, Gap relies heavily on overseas suppliers; about 98 percent of its products are manufactured outside the U.S., with about 22 percent coming from China. The company uses suppliers in more than 50 countries. In an effort to clear itself of using overseas sweatshops, the company adopted ethical standards for its suppliers in 2001, which included freedom for workers to return to their home countries. Since 2004, Gap has released annual social responsibility reports, documenting the social, environmental, and economic impacts of its international operations. In late 2007, Gap announced a package of measures that included a $200,000 grant to improve working conditions and a conference dedicated to finding solutions to child labor issues.