Banana Republic, the preppy apparel retailer that’s mired in a sales slump, has identified one of its key strategic errors: The demographic it targets is too narrow.
“Banana Republic has historically been known as a skinny brand,” said Art Peck, chief executive officer of Gap Inc., which owns the chain -- a perception that keeps some potential customers away. Meanwhile, a diversity council that works to weed out bias in the design process flagged another issue to management: The range of colors on apparel items meant to match skin tones was too limited.
