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.

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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 Gap.com, OldNavy.com, BananaRepublic.com and PiperLime.com to click between the various web stores, select merchandise and then use one shopping cart to complete a purchase.

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