Dive Brief:
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San Francisco-based Gap Inc. reported Thursday that sales online and at stores open more than a year fell 2% in June, failing to realize an expected .8% gain.
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Sales at Gap and Banana Republic stores each fell 7%, while sales at the company’s lower-priced Old Navy stores saw a 7% rise. But sales at all those stores were poorer -- Gap, 5% rise; Banana Republic, 1% fall; Old Navy 13% rise -- than a year ago.
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Old Navy’s healthier performance was attributed to its lower prices and its selection of clothing in the trendy activewear space.
Dive Insight:
Gap Inc. is struggling to come back from the tough winter slump that has buffeted its sales. The company says investments in technology and a unilateral minimum wage hike will boost its customers’ experience and improve its fortunes.