$10 pants, $5 leggings and the like ... It's hard for other companies to compete with such low prices.

much more expensive and so far they seem to be doing ok . and then there is abercrombie , hollister and all the other crap .

A much greater ability to respond to their customers. That matters a great deal if you want to get reg price sales. Gap also fell into competing with everyone's mark downs and lost a lot of quality and good design. But online sales is a growing sector, and ditching stores that are now poor performers is not a bad idea.
They are trying to get back to a ace where they have exciting clothes that people will actually pay for.

and have also read about the company in retailing research.

RayBan knock-offs for $5. Stuff that would be considered counterfeit merchandise if it was sold on the street. Cheaply made and cheap. A different model than GAP.

GAP already tried going cheap with it's 'Old Navy' brand and they went up market with 'Banana Republic'. The closing of GAP stores mirrors the death of the middle class and aligns their business with an increasingly polarized economy.

Those stores are everywhere. I like Old Navy. Their clothes are low-priced, durable and don't go out of style. Most of what I wear is from Old Navy.

I don't think I've ever bought anything from GAP, and most certainly not Banana Republic.

They say mid-level restaurants are having a hard time, too. The rich can go to the top-end ones, and everyone loves a cheap, convenient taco, but it's not feasible it for middle class people to pay $12 to $20 bucks for some mediocre meal they can make at home.

the GAP became a bridge to far with business brinkmanship. They went from small town lazy malls selling a variety of jeans besides their own brand to glitz and glamour. They built a 1 million sq ft. warehouse 15 minutes from me which now has been rented off to a variety of companies. 15 minutes south of me is the mega outlet shopping center thats NY's tourist destination. Their cheap can't compete with the other guys cheap.

The clothes are so cheap that they look crappy and worn-out after just a few washes. Not worth it at any price IMO.

affecting malls, shops, etc. As for myself, I probably go to stores 90% less for things outside of groceries. Although, I sometimes regret the wait for delivery.

Welcome to the new world order.

Zara’s owner has passed Warren Buffett to become the world’s second-richest man

Amancio Ortega, the Spanish fast-fashion baron behind Zara—known for peddling cheap, trendy items like $15 crop-tops—has surpassed Warren Buffett to claim the title of world’s second-richest person.

His net worth, according to Bloomberg, is $71.5 billion compared to Buffett’s $70.2 billion—although Buffett would’ve been ahead if not for his philanthropic giving. Still, that leaves Ortega behind only Microsoft founder Bill Gates, who had $85.5 billion as of June 2.

The ranking is indicative not only of Ortega’s tremendous business acumen—he started Zara in 1975, making lingerie and bathrobes with his former wife in their living room—but also of the world’s seemingly insatiable desire for low-priced clothes. Just think of the margin on a $15 crop-top and how many of those you would need to sell to rival Ortega’s net worth.

Ortega’s company Inditex, which owns Zara, continues to go from strength to strength. In March, it reported net profit for the fiscal year was up 5% from the previous year, and that it planned to open up to 480 more stores this year. Currently, the company operates more than 6,600 stores in 88 countries across the world, and offers e-commerce in at least 27 of those markets.

Ortega has done it all with a relatively unique business model. While many other retailers were moving production to China to cut costs, Zara kept most of its manufacturing close to its home base in La Coruña. That allowed Zara to react quickly to trends and get products in stores right away. Customers could always count on Zara to find something new and on-trend.

http://qz.com/418425/zaras-owner-has-passed-warren-buffett-to-become-the-worlds-second-richest-man

But they get immediate reports directly from all their stores and react immediately.
They are forced to discount less, and already stock a wider mix of price ranges than most stores.

They lost the thread you may say

Gap, like Abercrombie and American Eagle, failed to adapt to the taste of millennials who want "fast fashion" without obnoxious logos and brand names plastered all over the shirt and sleeves. H&M, Urban Outfitters, Zara, etc sell clothes with various styles plus basics and does so while changing up their stock monthy. Last I checked, GAP doesn't do any of that.

Low cost, low markup retailers make their money on VOLUME. To get more volume for a fashion retailer, you need to get new stock constantly. That's what makes shoppers come back often. It's what makes discount retailers like Ross, Marshalls and TJ Maxx work as well. Unfortunately, that whole stacking them deep, selling them cheap business model is that the store employees usually get very low wages. When I worked in rwtail in the late 70's, I wasn't getting rich, but I made enough to share an apartment with a roommate. That would be difficult now.

Not to mention the sweatshop labor required to make those cheap clothes.

I guess the billionaires didnt buy enough Levi's to make up for the rest of us who cannot afford to buy luxuries like clothes.

The number of empty storefronts nearby is testimony to the reduced level of income. Lots of jobs but barely 1/2 the income of a decade ago.

That's what has been the younger markets way of communicating status more than clothes for the last 10 years. Younger people care less about clothes these days.

It was mobbed when it opened and for the last 3 years in a decline. Lots of young, hip stuff but not many customers. Same at many of the malls around here. Baby stores and cooking stores seem to last better.

http://www.washingtonpost.com/news/morning-mix/wp/2015/06/16/how-millennial-shoppers-have-made-gaps-basic-look-obsolete/