When it came to the merchandise, Pressler also resorted to “numbers.” Consumer-insight research
showed that the three brands were losing market share.With the distinction between the
products of the three brands becoming hazy, each seemed to be eating into the other’s market
share. He decided to reposition all the three brands, giving each a distinctive identity. While Gap
stayed in the middle, Old Navy focused on lower prices and basic items, and Banana Republic
raised prices and experimented with runway-influenced designs. The strategy yielded results in
the early days. In 2003, the business bounced back after 29 straight months of same-store sales
declines under Drexler. Cash flow from operations went up and Gap’s credit rating rose.