The web continues to do what stores can't for Gap Inc.: generate more sales. In 2008 e-commerce sales rose by 14% while comp-store sales and total revenue fell by 12% and 7.8%, respectively.

The web continues to do what stores can’t for Gap Inc: generate more sales.

In 2008 Gap posted e-commerce revenue of $1.03 billion, up 14% from $903 million in 2007. In comparison total revenue decreased by 7.8% to $14.52 billion from $15.76 billion in 2007 and comparable-store sales declined by 12%.

Net earnings increased year over year by 16.1% to $967 million from $833 million. Gap is No. 24 in the Internet Retailer Top 500 Guide.

The web accounted for 7.1% of total sales last year versus 5.7% in 2007.

The web also drove sales growth in the fourth quarter ended Jan. 31, 2009. In Q4, web sales for Gap, which operates eight e-commerce sites, increased by 10.4% to $319 million from $289 million in Q4 of 2007. Comparable-store sales declined 14% in the fourth quarter as total sales fell by 12.6% to $4.08 billion from $4.67 billion. Net income in the final quarter of the year declined by 8.3% to $243 million from $265 million in the fourth quarter of 2007.


As store sales and total revenue languish, Gap continues to invest in the Internet to drive more business. In May, Gap consolidated all of its e-commerce brands onto a single platform. The updated platform allows shoppers at,, and to click between the various web stores, select merchandise and then use one shopping cart to complete a purchase.