The Gap Inc. (GPS), Costco Wholesale Corporation (COST): Retailers Find Solace in Solid Brands

Falling behind
If there’s a lesson for companies to learn here, it’s that consistency means a lot to consumers. If everything is going crazy, we often turn to the familiar to comfort ourselves — and shopping is no different. Contrast the success that The Gap Inc. (NYSE:GPS) and Costco Wholesale Corporation (NASDAQ:COST) have had with the lackluster flatlining over at L Brands Inc (NYSE:LTD) . The company had no change in comparable in-store sales in June, and online sales of Victoria’s Secret fell 9%. L Brands Inc (NYSE:LTD) has had a hard time keeping customers interested, and its comparable sales have been up and down as a reflection. Because it has had seasonal flops, it’s been forced into promotional activity that throws consumers off, and as a result, it can’t give its customers the experience that they expect.

Inconsistent sales result from inconsistent portrayals — that rhymes, so you know it’s true.

The bottom line
We’re still reeling from all the economic confusion, and the folks leading the way seem to be pulling us in all kinds of different directions. Companies that can offer some solace from the chaos are going to do well, as The Gap Inc. (NYSE:GPS) and Costco Wholesale Corporation (NASDAQ:COST) have highlighted. While branding has always been important, it’s never been as valuable as it is right now.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale Corporation (NASDAQ:COST). The Motley Fool owns shares of Costco Wholesale.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.