Advertising and apparel will be around as long as civilized society. But enough about the similarities. It's the differences that will offer us some real insight into which of these two companies represents the better investment at the current price. I think, however, that any current sales and income differences pale in comparison to the contrast we find in the business economics of these two companies. Inventory management Inventory is just the stuff a company sells.
Inventory management is the entire process of getting a product to the customer.
This process must be managed carefully in order to minimize inventory depreciation, spoilage, and carrying costs. Let's consider Gap first. The logistics of selling clothing are incredibly difficult. Gap must vigilantly monitor the quantity and mix of clothing styles, colors, and sizes. Too much of some particular item, and it goes on the sales rack.