• by Sarah Mahoney , Staff Writer, 7 hours ago

In what looks to be a giant step toward pop cultural relevance, Gap Inc. has hired Pam Kaufman as executive vice president and chief entertainment officer. This newly created role aims to build the retailer’s entertainment, content, and licensing platform in music, TV, film, sports, gaming, consumer products, and cultural collaborations, which the company hopes will lead to new kinds of storytelling, focusing on the intersection of fashion and entertainment.

It’s the latest twist in the company’s ongoing transformation, as president and CEO Richard Dickson keeps looking for new ways to restore the company to its former glory, finding growth in fandom opportunities. And it builds on a reputation that’s already there, whether it’s recent partnerships with Harlem’s Fashion Row during NBA All-Star Weekend, the Better in Denim campaign featuring Katseye, or Old Navy’s first-ever co-created collection and experience with Disney.

Kaufman will work from the company’s San Francisco headquarters, in New York and in new office in Los Angeles on Sunset Boulevard. The company hopes she can use “fashiontainment” to inspire shoppers and drive revenue growth.

“Fashion is entertainment, and today’s customers aren’t just buying apparel, they’re buying into brands that tell compelling stories and drive cultural conversations,” said Dickson in the announcement. “As we reinvigorate Gap Inc.’s house of iconic American brands to drive relevance and revenue, we recognize entertainment is a critical link to the consumer.”

Kaufman was previously president and CEO of Paramount’s international markets and global consumer products, and she is on the boards of Stella McCartney, Lindblad Expeditions, and the Rock & Roll Hall of Fame.

Dickson’s transformation plans are already paying off, and after decades of declines, Gap recently reported its seventh consecutive quarter of sales gains. But the underlying challenges are still there, and some analysts believe each of the company’s four brands lack a distinct differentiation in the brutal apparel landscape.

David Swartz, an analyst who follows Gap for Morningstar, believes Dickson “has done an admirable job of stabilizing this long-suffering business.” But he writes that Old Navy, the company’s largest division -- and the largest apparel brand in the U.S., according to Euromonitor --“faces considerable competition in the discount apparel space and with nearly 1,250 North America stores, has limited room for expansion.”

Improving results for Old Navy, Gap, and Banana Republic “provide confidence,” he adds, but profits “will remain depressed,” especially given ongoing tariff pressure.