*By Carlo Versano*
The middle is falling out of retail.
Stores that don't have a distinct identity in an era of direct-to-consumer marketing are getting crushed. For the latest example, look no further than Gap, which reported a 5 percent drop in sales at its namesake brand, even as its other outfits displayed strength. Old Navy sales were up 5 percent in the same period.
It's another indication that Gap's status as an iconic, wholly American brand is not enough to compete in an apparel market dominated by high-end experiential stores (Nordstrom), value-oriented stalwarts (Target), and fast-fashion, inexpensive trendsetters (H&M). And, of course, Amazon looms over everything.
"It's not quite clear what Gap's identity is," Quartz fashion reporter Marc Bain said. Bain wrote an article earlier this year, ["Gap Inc. Should Just Be Renamed Old Navy Inc."](https://qz.com/1220104/gap-inc-should-just-be-renamed-old-navy-inc/), and the latest earnings report may prove his point.
But Gap's results don't detract from retail's financial health after a prolonged period of turmoil, Bain said Friday in an interview on Cheddar.
For years, retailers had too many stores and built them too big. A contraction in brick-and-mortar locations is just now paying off.
"Companies are shrinking to succeed," Bain said.
Bain cited redesigns of Nike and Adidas flagships as examples. He added that Walmart's strategy of partnerships and acquisitions with e-commerce stars is another bright spot in the ever-changing retail landscape.
And then there's Target. Fresh off a stellar quarter ー digital sales were up 40 percent and same-store sales up 4.5 percent. CEO Brian Cornell [said](https://www.cnbc.com/2018/08/22/target-ceo-credits-strong-growth-with-the-best-consumer-environment-hes-ever-seen.html) Wednesday that consumer environment of today is "perhaps the strongest I've seen in my career."
President Trump mentioned those comments in a [tweet](https://twitter.com/realDonaldTrump/status/1032929824900370432) Friday morning, telling his followers that the economy is alive and well.
For full interview [click here] (https://cheddar.com/videos/how-gap-compares-to-sister-brand-old-navy-after-earnings).
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
