Podcast Summary: Good Bad Billionaire – Episode: Doris Fisher: Don’t Mind The Gap

Introduction Good Bad Billionaire, a BBC World Service podcast hosted by Simon Jones and Zing Tsjeng, delves into the lives of some of the world's wealthiest individuals, exploring how they amassed their fortunes and evaluating their impact on society. In this episode, titled "Doris Fisher: Don’t Mind The Gap," the hosts examine the life and legacy of Doris Fisher, co-founder of the iconic clothing brand, Gap Inc.

Early Life of Doris and Don Fisher Doris Lee Feigenbaum Fisher, born in 1931 in San Francisco, hailed from a well-to-do Jewish family. Her parents' marriage was a notable social event, announced in The New York Times (03:27). Doris, the middle of three children, was driven by a desire to make her parents proud, particularly her father, a lawyer and Republican state legislator for California (03:44).

Don Fisher, Doris’s husband, also came from a middle-class Jewish family in San Francisco. A University of California, Berkeley graduate in Business Administration, Don was a charismatic and athletic individual, standing six feet four inches tall and having captained both the swimming and water polo teams (04:40).

Founding the Gap In the late 1960s, while Don operated a commercial real estate business, the Fishers identified a gap in the market. Not satisfied with the limited selection of Levi's jeans available at department stores, Don and Doris envisioned a one-stop shop offering every style, size, and color Levi Strauss had to offer (06:32). This vision led to the establishment of their first store in August 1969 on Ocean Avenue, strategically positioned near colleges and a high school to cater to the burgeoning youth culture of the time (07:25).

"Doris and Don decided to be equal partners," Simon Jones notes (07:25). They invested $63,000 to launch the store, funding part of it by raiding their children's savings accounts—a testament to their commitment and entrepreneurial spirit (07:58).

Growth and Initial Success The Gap quickly gained popularity through innovative merchandising and strategic marketing. By selling jeans organized by size rather than style, they enhanced the shopping experience, making it easier for customers to find their fit (10:18). A pivotal moment was their collaboration with Levi's advertising director, Bud Robinson, securing a 50% contribution towards radio advertising—a novel approach at the time (11:00).

Within a year, the Fishers opened a second store in San Jose and expanded their inventory to include women's Levi's (11:43). By their third anniversary, Gap boasted 25 stores across the U.S., emphasizing convenience with locations near bus stops and high-traffic areas (12:09).

Challenges and IPO Downfall In May 1976, Gap went public with an initial public offering (IPO) at $18 per share. However, the same month, the Federal Trade Commission accused Levi Strauss of price fixing, casting a shadow over Gap's primary supplier (14:53). This led to Gap's first loss after 26 consecutive profitable quarters, causing their stock to plummet to $7.25 per share within a year (15:14).

The fallout was severe, resulting in nine class action lawsuits alleging that the Fishers attempted to sell their holdings before announcing the bad news (15:37). Although the Securities and Exchange Commission found no criminal wrongdoing, Gap settled these lawsuits for $5.8 million (16:01).

Expansion and Recovery in the 80s and 90s Undeterred by early setbacks, the Fishers embarked on aggressive expansion. By 1978, Gap had 300 stores nationwide. The 1980s introduced strategic acquisitions, including Banana Republic in 1983 and Pottery Barn, though the latter resulted in significant losses (17:36).

A turning point came with the hiring of Mickey Drexler in the mid-1980s. Drexler revamped Gap’s image by remodeling stores, slashing prices, and broadening the product range to include casual, stylish basics. His efforts transformed Gap into a recognizable and beloved brand, culminating in a navy and white Gap logo by the end of the decade (19:07).

By 1991, Gap Inc. had nearly 1,000 stores and $2 billion in sales, making Doris and Don Fisher billionaires with a combined worth of $1.9 billion and a 41% shareholding in the company (21:22).

The Peak and Becoming Billionaires The 1990s marked Gap’s zenith. It became a cultural phenomenon, featured on the cover of Vogue’s 100th anniversary issue with supermodels clad in Gap attire (22:35). Celebrities like Mick Jagger and characters from iconic films and TV shows wore Gap, cementing its place in American fashion (22:57).

Decline of Gap and Market Challenges Despite its success, Gap faced declining fortunes in the late 1990s and early 2000s. The brand struggled to stay relevant amidst shifting fashion trends, increased competition from fast fashion giants like Zara and H&M, and criticisms over labor practices, including sweatshops and child labor (25:00). Additionally, Gap’s ubiquitous presence became a liability, with the brand being perceived as bland and overexposed.

By 2002, Gap’s profits had halved, leading to the ousting of Mickey Drexler and the transition of leadership to their son, Bob Fisher (26:22). Gap Inc.'s stock volatility continued, and despite owning over 3,000 stores globally, the company never regained its former glory (27:58).

Current Status and Wealth As of 2019, the Fisher family remained billionaires, with Doris owning 6.1% of Gap Inc. and her sons holding just under 30% (28:23). Despite Gap’s struggles, Doris Fisher’s personal wealth stood at $1.5 billion, and she continued to serve as an honorary lifetime director on Gap’s board at the age of 93 (29:28).

Philanthropy The Fishers established the Gap Foundation in 1977, donating over $100 million to various causes, particularly supporting U.S. charter schools (36:12). However, their philanthropic endeavors have been met with mixed reactions due to the controversial nature of charter schools, which face criticism for alleged discriminatory practices (36:27).

Hosts' Assessment and Conclusion In evaluating Doris Fisher, Simon and Zing consider multiple facets:

• Wealth: Doris and her family amassed significant wealth, including a $1 billion contemporary art collection, earning her a score of 4 out of 10.

• Rags to Riches: Coming from a privileged background with elite education from Stanford, Doris scores 4 out of 10 in this category.

• Villainy: Gap faced serious ethical issues regarding labor practices. While Doris and Don weren’t particularly ruthless in their business dealings, the company’s oversight placed them mid-pack, earning Doris a 3 to 6 out of 10, reflecting differing viewpoints.

• Philanthropy: Contributions to education and the Gap Foundation received mixed reviews, resulting in a 3 out of 10.

• Power: Despite significant political donations, Doris’s influence was modest compared to other billionaires, scoring her a 2 out of 10.

• Legacy: Gap’s cultural imprint and status as a symbol of American consumerism earn it a high legacy score of 8 out of 10.

Final Judgment: Just Another Billionaire After thorough evaluation, both hosts agree that Doris Fisher embodies the archetype of "Just Another Billionaire." While her contributions to fashion and philanthropy are noteworthy, they neither elevate her to the status of a "Good" billionaire nor condemn her as "Bad." Instead, she represents the complex interplay of entrepreneurship, cultural influence, and ethical challenges inherent in building a global brand.

Notable Quotes

• Doris Fisher on her success: "I've been successful because I've worked hard." (03:04)
• Doris on equal partnership: "Why not? It didn't even dawn on me to do anything differently. We were doing it together as partners." (07:58)
• Doris on philanthropy: "I love the work I do in our communities. I love being able to help people who have fewer opportunities." (36:27)

Conclusion "Doris Fisher: Don’t Mind The Gap" offers a comprehensive look into the life of a pioneering female billionaire whose entrepreneurial vision transformed retail fashion. While her journey with Gap Inc. showcases remarkable innovation and resilience, it also highlights the challenges of maintaining relevance and ethical standards in a rapidly evolving global market. The episode serves as a nuanced exploration of wealth, power, and legacy in the modern business landscape.