The curse of The Gap? Gap's tremendous growth in the late 1990s led to increases in its retail locations that eventually flooded the closets of American consumers with Gap clothing. In becoming so ubiquitous, Gap subsequently lost part of its brand appeal and sales began to decline. Skeptics of Coach argue that Coach's popularity and the increasing sales growth at its factory stores, which sell cheaper and marked-down versions of its merchandise, could result in the perception that its products are too "pedestrian," turning off customers attracted to its stylish handbags.