Winner of Q2 2014: GAP

Over the past five years, US clothing giant Gap has increased revenue by 1.6 billion dollars, grown earnings per share at a 15 percent compound annual growth rate and returned an average of 1.6 billion dollars in cash per year via share buybacks and dividend. It has its sights firmly set on achieving long-term, profitable growth across its portfolio of brands and, during its annual investor meeting in San Francisco on 16 April, the company provided an overview of its strategic initiatives to accomplish this. Key to the growth plans are responsive supply chain and omnichannel retailing.

“In the next five years, we plan to leverage our scale to drive our strategic initiatives – including global growth plans, omnichannel strategies, a seamless inventory model and fully responsive supply chain. We expect these initiatives to contribute meaningfully to our revenue growth and operating profit,” said Glenn Murphy, chairman and chief executive officer at Gap.

“As the retail landscape evolves, we continue to deliver on our omnichannel roadmap and focus on owning the shopping experience of the future,” Murphy added. Key elements of a responsive supply chain include fabric platforming, vendor-managed inventory, rapid response, and test and respond. Gap anticipates that 50 percent of its product assortment will be on the responsive supply chain model by the end of 2016.