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By Adrianne Pasquarelli | May 14, 2024.

The news follows appointment of new CMO at Gap brand last week

Gap has concluded its media review.

Gap Inc. has selected Omnicom Group for its media business, roughly five months after putting the account in review.

The San Francisco-based clothier, which owns Old Navy, Banana Republic and Athleta in addition to its namesake label, confirmed the news in a memo to employees from CEO Richard Dickson on Tuesday afternoon.

The account, which covers the U.S., Japan and Canada, will be serviced by a team from across Omnicom Media Group, which includes OMD, PHD and Hearts & Science. The account will be “anchored by OMD,” according to an OMG spokeswoman. PHD previously worked on portions of the account that included traditional media.

“As our brands ramp up their reinvigoration efforts, deepening connections with customers and engaging in the cultural conversation, it’s crucial we work with best-in-class partners who can help us imagine and then do better,” wrote Dickson in the memo, highlighting OMG’s client roster of Apple, Disney, L’Oréal, Chanel, PepsiCo and Vans and the company’s “customer-centricity.”

Dickson noted that the relationship will help with efficiencies for both Gap Inc. at large and its individual brands.

MediaLink handled the review.

Also on Tuesday, Gap announced it is creating a marketing shared services organization as it seeks to standardize its media functions. The company has an open role for a head of marketing shared services position that will oversee media, marketing intelligence, direct marketing duties and manage partner relationships. That position will report directly to Dickson, the memo added.

In 2022, Gap Inc. spent $647.2 million on measured media in the U.S., a 4.6% decline over the previous year, according to Ad Age’s Datacenter. The company spent $878 million on total advertising costs for the year ended Jan. 28, 2023, Datacenter found.

It’s been a busy spring for Gap as the retailer builds on fresh momentum from new leadership. Dickson, credited with the revival of the Barbie brand, joined Gap from Mattel in July. Last week, Gap announced the hire of former PepsiCo marketer Fabiola Torres as global chief marketing officer of the Gap brand. In addition, the clothier also generated Met Gala buzz last week with an all-denim dress created by new Executive VP and Creative Director Zac Posen.

In its fourth quarter, Gap reported a 1% rise in net sales to $4.3 billion. The company also generated a profit of $185 million for the quarter following a year-earlier loss. First-quarter results will be reported later this month.

Analysts have been taking notice of some of the recent changes spurred by Dickson.

“Overall, Gap is in a better place than it was a year ago,” Neil Saunders, managing director of GlobalData Retail, wrote in a recent research note. “Some modest improvements are coming through but, most of all, the energy and mood music have shifted.”