• Brandweek, Monday, March 3, 2008 10:30 AM

Apparel retailer Gap is canning its spring TV ad campaign and eying other marketing cutbacks after a miserable fourth quarter in which its sales fell 5%. Considering the "volatile economic environment," CEO Glenn Murphy says the company will take another look at plans for the second half of 2008, once it has better understands its holiday efforts. "... not all of our marketing money is being revisited," he says.

"Some portion is being re-looked at to make sure it's being used appropriately ... and that particularly applies at Old Navy." For the moment, marketing for Old Navy and Banana Republic will be similar to last year's, but the spring TV campaign for the Gap brand is history. Instead, it will focus on print and in-store efforts for the a footwear collaboration with designer Pierre Hardy, while launching a capsule T-shirt collection in collaboration with the Council of Fashion Designers of America.

Gap had already halved its ad spend last year, spending just $55 million, down form $117 million in 2006, according to Nielsen Monitor-Plus. Old Navy spent $173 million on U.S. ads in 2007, vs. $200 million the year before.

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