San Francisco - October 11, 2004


Combining greater convenience and more rewards in a way never done before by any specialty apparel retailer, Gap Inc. today began offering a new private-label credit card that lets customers use one card to shop the company’s Gap, Banana Republic and Old Navy brands.

The new credit card program enhances existing loyalty rewards, allowing points to be earned and redeemed across Gap, Banana Republic and Old Navy. Single sign-up for new customers and a consolidated monthly statement add additional convenience. The aggregate reward credit card program is the first of its kind within the specialty retail apparel industry.

"We’re pleased to offer our customers convenience they’ve asked for -- one card accepted both in our stores and online at Gap, Banana Republic and Old Navy, and offering a combined loyalty and rewards program,” said Toby Lenk, President of Gap Inc.’s Direct division, which is managing the integrated program along with GE Consumer Finance. “By making it easier and more rewarding to shop Gap, Banana Republic and Old Navy, our new cross-brand credit card will strengthen our relationship with existing and new customers.”

Through customer research, the company found that its current cardholders are its most loyal customers -- spending and visiting about twice as much as other customers and actively cross-shopping the three brands. Survey results indicate that about 65 percent of Gap brand cardholders already shop at Banana Republic and Old Navy and that 75 percent of Banana Republic cardholders shop at Gap and Old Navy, and the program aims to reward that.

Existing and new credit card customers will receive coupons good for 10 percent off an initial purchase with their card at each brand. In addition, existing and new cardholders will have access to brand-specific promotions. They will also receive free shipping for online purchases over $50 made with their card on the individual brand Web sites. New credit card customers can apply in stores or online. Both existing and new customers will earn one point for every dollar spent with their card at any Gap, Banana Republic or Old Navy store, including outlet and factory stores and brand Web sites. Cardholders earn a $10 coupon redeemable at any brand for every 200 points they accumulate across the brands, representing a five percent rebate.

Banana Republic Luxe customers have a slightly different reward threshold, but also receive a five percent rebate.

Gap Inc. debuted its first private label credit card in 1998 with a Banana Republic card. Gap and Old Navy followed in 2000.