• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
RetailGap

Gap CEO hints at clothing vending machine

By
Benjamin Snyder
Benjamin Snyder
Managing Editor
Down Arrow Button Icon
By
Benjamin Snyder
Benjamin Snyder
Managing Editor
Down Arrow Button Icon
March 23, 2015, 6:06 PM ET
Photograph by Justin Sullivan — Getty Images

New Gap CEO Art Peck wants to make it clear that he’s willing to be innovative to boost his company’s sales, saying in a recent interview that he’s embracing technology like radio-tagged clothing and even the possibility of a vending machine that dispenses clothing.

In an interview with Fast Company, Peck, 59, highlighted Gap’s aim to use technology in what he’s dubbed “Retail 3.0,” or a strategy in which mobile phone use leads the way in shopping. The magazine reports that Peck shrank Gap’s physical U.S. footprint by closing 225 locations “in malls where real estate wasn’t productive.” That’s because he wants mobile to reign supreme.

“I would like to be able to articulate a nice linear path as to what our stores are going to evolve to,” he said in the interview. “But I think it’s going to be a lot messier than that.”

To meet those ambitious plans, Peck said he has developers in Silicon Valley using customer and salesperson feedback to create codes.

“I think that kind of rapid prototyping—typical in a lot of other industries, not so typical in ours—will be critical for figuring out this collision of physical and digital,” Peck said in the interview. “We’ve been doing business the same way for 40 years, and there are very few 40-year-old business models that are successful forever.”

The company is also trying out new showroom formats and mobile registers, among other changes to the stores’ current offerings.

Along with its namesake store, Gap owns Banana Republic and Old Navy. The company has had a rocky few years in terms of sales, with dropping figures at North American locations from 2006 to 2010. In February, the company posted fourth-quarter earnings in February that saw sales rise 3% to $4.71 billion. Old Navy stores saw an 11% increase in sales, while Gap declined by 6%. Banana Republic saw sales rise by 1%.

Watch more business news from Fortune:

About the Author
By Benjamin SnyderManaging Editor
LinkedIn iconTwitter icon

Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.