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Gap has announced the closure of its new women's brand Forth & Towne. Here is a Business Week article on its launch which focuses on how the store was creating a branded experience. Then here is an FT piece on F&T's demise. Looks like The Gap is slimming down ready for advances from Private Equity.

 

SEPTEMBER 20, 2005

Forth & Towne: The Store's the Thing

At Gap's new women's apparel chain, architectural design -- notably the dressing room's central placement -- is defining what the new brand is



On a recent Saturday afternoon at the Palisades Mall in Nyack, N.Y., Forth & Towne's "style consultants" buzzed about, handing out bottled water and trying to help shoppers get comfortable in a place that wasn't even listed on the mall directory yet. This store -- as well as four others, in the Chicago area -- glows in a way that befits its price point, which is about even with Banana Republic's. Art-deco-looking furniture recalls the golden age of department stores, and sketches of the collection bring a sense of provenance to a brand new brand.

GETTING OUT TO SHOP.  But from any angle, the store is dominated by an illuminated circular wall topped by stainless steel- and crystal-beaded curtains and sculpted with niches filled with mannequins. Within its beaded pleats is the elaborately decorated "fitting salon," which is the centerpiece of the store experience -- and, by extension, the Forth & Towne brand itself.

"Why would you go to a store vs. shopping online? What's going to draw you out?" David Rockwell, Forth & Towne's architect, wondered recently, recalling his design process. "A lot of it is social interaction. We're in a world where there's more and more reason to stay at home. Forth & Towne is really about making a commitment to going out in the public realm."

And Rockwell is known for creating places that people want to be in. His designs for Nobu restaurants -- all seven locations in the U.S. -- transformed superb sushi into crowd-pleasing theater. He put the style in Starwood Hotel's high-style W brand with designs for two New York locations. And he often works in the theater, designing sets for Dirty Rotten Scoundrels and the Tony-winning Hairspray. What ties all his work together is a sense of celebration, of theatrical extravagance, that transforms going out into an event.

LIKE THE CLOCK TOWER.
  At Forth & Towne, the real stage is the fitting rooms, so his design literally pulls them to the center of the store. The narrow anonymous fitting room hallways are replaced by an inviting round room furnished like a little hotel lobby, with comfortable chairs and a "style table" laid out with fashion magazines, fresh flowers, and water bottles.

Twelve fitting rooms, each with its own unique wallpaper, surround the central space. The concept is to create a place that encourages interaction with friends, other shoppers, men-in-tow, and Forth & Towne's "style consultants." Like the clock tower in a town square or the large chandelier in a department store, the fitting salon marks the symbolic and celebratory center of their place.

In the absence of an existing brand identity, Rockwell and his client are turning on its head the conventional wisdom that a retail environment reflects and enhances its brand. Instead, the Forth & Towne architecture defines the brand -- and both are squarely aimed at improving the shopping experience. 

18 months later......

 

 

Gap to abandon new fourth brand

By Jonathan Birchall
Updated: 3:11 p.m. ET Feb. 26, 2007

Gap, the US troubled clothing retailer, is to close down a fledgling line of stores aimed at older women, in a change of strategic direction following the depature last month of Paul Pressler, its former chief executive.

The move comes amid speculation that Gap's management might consider the sale of all or part of the company, following two years of poor sales at its Gap and Old Navy brands.

The company's Forth & Towne stores, unveiled just 18 months ago, had sought to focus on baby-boomer women aged 35 and over, who represent an increasingly important segment of the US clothing market.

Gap said that despite an encouraging start "a thorough analysis revealed the concept was not demonstrating enough potential to deliver an acceptable long-term return on investment".

It will take a $40m pre-tax charge in its first and second quarters due to the closure of the brand's 19 existing stores, most of which opened just last autumn.

The new brand was a central element in the company's growth strategy under Mr Pressler, who has now been replaced as interim president and CEO by Bob Fisher, the son of Gap's founders.

While the stores represented a new attempt to focus on a well-defined market segment, they also took adopted a merchandising strategy that left some customers confused, with four different fashion "selections" in each store, that were supposed to target different life-styles.

Todd Slater, analyst at Lazard Capital Markets, welcomed the move, saying the brand "never gained much traction, suffered from fit, style, and image problems, and became a big distraction".

Mr Fisher described the experience with the format as "an illustration of the innovative risks you need to take in our business" and added that Gap wanted to "focus our efforts on stabilising the existing businesses".

Forth & Towne was developed and headed by Gary Muto, a company veteran who was formerly president of the Gap brand, before being moved to the project by Mr Pressler.

The decision is the latest in a series of changes made since Mr Fisher took over from Mr Pressler, including replacing Cynthia Harriss as president of the Gap brand with Marka Hansen, formerly president of the more successful Banana Republic stores.

Gap subsequently announced the departure of Charlotte Neuville, the head designer hired by the Gap brand in 2005 as part of a bid to reverse falling sales.

Some analysts have argued that the moves undertaken since Mr Pressler left, and ahead of the naming of a new CEO, indicate that the members of the Fisher family, who control over 30 per cent of Gap's shares, are committed to turning Gap around, rather than a sale.

Analysts at Merrill Lynch recently argued that there was only a 25 per cent chance of a leveraged buy-out of the company, noting that the Fishers had continued to back the previous management through several failed turnaround bids.

Gap's shares were largely unchanged by the news, trading at $19.71 at lunchtime in New York.

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