Gap to cash in with triple-brand credit card

US fashion giant Gap is launching a single credit card to build loyalty across its three brands as it posted a dip in profits. From October 11, shoppers will be able to earn points redeemable at Gap, Banana Republic and Old Navy stores as well as online.

Gap chief executive Paul Pressler told analysts that holders of existing cards for the brands spend almost double the amount other customers do, and there was an opportunity to drive sales by encouraging cardholders to shop across all three chains. Pressler also confirmed that Gap aims to expand overseas, including in the UK, and may launch a fourth US chain (Retail Week, August 20).

In the three months to July 31, Gap's net earnings fell to US$194 million (£107.5 million) from US$209 million (£115.8 million) for the comparable period last year.

Analysts at Merrill Lynch noted that despite tough trading, 'margin improvements remain solid, boding well for the overall health of the brands and earnings potential'.