Gap's Denim Moment at the Met Gala Was Stunning and Smart

Among the many luxury brands showing off their lavish creations at this week's Met Gala were a handful of more conventional names. One of the most notable was The Gap Inc., which dressed actress Da'Vine Joy Randolph.

Accompanied by fashion designer Zac Posen, the company's new creative director, the Oscar winner wore a custom denim dress from Gap.

Press coverage and social media mentions have justified Posen's surprise appointment in February. But to make the most of choice, the retailer must capitalize on its increased visibility in exactly this way, as well as with more relevant products and viral marketing campaigns.

Gap, saddled with stores in struggling malls and fighting a shift toward online rivals such as Shein Group Ltd, has long been trying to turn its fortunes around.

He named Posen creative director of Gap Inc., as well as top designer of its Old Navy value line, in a bid to elevate the company's style credentials. This is much needed, as Gap and Old Navy face stiff competition from other affordable trendsetters, such as Target Corp.'s high-fashion collaborations. Meanwhile, Associated British Foods Plc's Primark, known for its cheap chic, and Zara of Inditex SA, are quietly expanding throughout the United States.

Posen is a household name thanks to his work as a judge on Project Runway between 2012 and 2018, and his more than 2 million followers on Instagram. In fact, another reason for his appointment is to help Gap once again become a cultural touchstone, a status he last enjoyed in the 1990s under former CEO Mickey Drexler.

Dressing Randolph is already paying off. Online mentions of Gap increased 146% between May 6 (the day of the Gala) and the morning of May 8, compared to the previous three days, according to social media intelligence company Brandwatch.

The dress's sculpted bodice was inspired by historical 18th-century evening wear, but the look itself was very up-to-date. Not only is Gap synonymous with denim, but the fabric is enjoying a fashion moment. The return to wider-leg jeans and the trend for Western styles popularized by Pharrell Williams' show for Louis Vuitton and Beyoncé's Cowboy Carter album have made denim one of the hottest trends out there.

Posen is known for dressing a more diverse range of celebrities, such as plus-size model Ashley Graham. By casting Randolph, a larger-figured woman who, incidentally, was attending her first Met Gala, he is sending a powerful message that Gap is for everyone.

But in addition to pleasing celebrities (Randolph effusively praised the ensemble), Posen must satisfy Gap's broader customer base.

Perhaps a good start would be to produce a related capsule collection the next time Posen dresses a high-profile person. Randolph's denim dress would have been perfect for this. Michelle Gass, chief executive of Levi Strauss & Co, recently said she was developing tops, including corsets, to make the most of the surge in demand for denim.

Given that Posen joined only three months ago, it's likely that a related range would have been a stretch. And there's little point in encouraging shoppers to get in the door if the broader assortment fails. While there are some welcome developments, such as a selection of linen garments in a variety of attractive colors and styles, Posen's makeover needs to go further. To underline this, Gap's website kept advertising discounts. Too many markdowns is something the retailer has struggled with for a long time.

It's also notable that Gap's mentions on social media followed other brands visible at the Met Gala, such as Tommy Hilfiger, which dressed the K-Pop band Stray Kids. But from a glass-half-full perspective, that means there's more room to grow for Posen's celebrity collaborations.

It's still early in both Posen's creative journey and the tenure of new Gap CEO Richard Dickson, who joined in August of last year after reviving Barbie at Mattel Inc. But so far, the signs are promising.

The company surpassed fourth-quarter sales expectations. Meanwhile, shares have more than doubled to around $22 since Dickson's arrival. Elsewhere, a 90s-inspired partnership with British streetwear brand Palace and a marketing campaign for the linen range starring South African singer Tyla are positive.

But there is more to do. It would be wise to further capitalize on Gap's heyday in the '90s and '00s. And in addition to breathing new life into its namesake brand and Old Navy, the company must get its Banana Republic chain back on track. The latter should take full advantage of the return to more formal dress and consumers' appetite for fewer, but more expensive, garments. Posen wore a Banana Republic suit to the Met Gala, and similar styles are available in stores and online. Meanwhile, Athleta, Gap's athleisure arm, must compete more effectively with rivals such as Inditex's Oysho.

Still, Posen's red carpet debut for Gap is a clear win. After the now-defunct partnership with Kanye West failed to reignite the retailer, perhaps a touch of accessible glamor will do just that.