In case you didn’t know, Gap, Old Navy, and Banana Republic are all owned by the same parent company. And in case you also haven’t noticed, their clothes tend to be very similar in their styling. So why not combine all three into one store? Is there are reason why there are three different brands, but the same company underneath it all? Well the answer is yes, there is a reason; so the three will not be joining forces to become one any time soon. The reason that there are three different stores is that they each aim to go after different economic segments of their market. Old Navy, the cheapest brand of the two, tend to go after more the more urban segment of the market. They offer trendy clothes that appeal to a broad demographic, but sell their clothes at reasonable prices that more people can afford.

The Gap.com on the other hand, focuses more on middle America. This brand has a preppy edge to it and is pricier than Old Navy. The styling is also more conservative. Finally there is Banana Republic which services the preppy Gap customer at a later stage in his life. Banana Republic tends to be more expensive ( most items are over $75) and is geared more toward the Yuppie or young professional individual who wants style and hasn’t had any kids yet, so he can afford more expensive clothes. And there you have it: the reason the 3 will never become one.