It's unfortunate that it took this long before Gap realized the changing retail clothing market. Customers have been gravitating towards lower-cost, quickly-changing fashion apparel for years now. I'm shocked that they didn't realize this given that their Old Navy stores continue to do well.
Gap's network of stores essentially needs to be pared back; it's as simple as that. Their re-branding is going to be a challenge, especially if they don't revisit their pricing model. With the rapid introduction of the popular lower-cost clothing stores, Gap really needs to keep their pricing in line to remain competitive.