Twelve straight months of declining same-store sales has put San Francisco-based retailer The Gap in search of a new spokesmodel and a new retail strategy. Lackluster atmospherics at Gap stores along with a bland product offering have failed to inspire consumers, and analysts worry that the iconic American retailer might continue its slide if it doesn't score big with back-to-school sales.

Despite flagging sales and the loss of premier spokeswoman Sarah Jessica Parker, Gap is pressing ahead with an ambitious expansion of its most popular retail divisions: Old Navy and Banana Republic. Gap's plan to add 260 new stores by the end of 2007 will push the company's Old Navy stores beyond the 1000 mark; the count for Banana Republic stores is expected to reach 520.

In addition, the $16.2 billion retailer has announced the creation of Forth & Towne, its newest brand of apparel stores that will cater to women ages 35 and older. Forth & Towne, which opens this fall, will attempt to reach the baby-boomer generation who grew up shopping at the Gap.