Saving Main Street: Cambridge Group Addresses Hard Times

Cambridge, Massachusetts

Michael Kanter and his wife and have owned and operated Cambridge Naturals near Harvard Square since 1974. That’s 46 years of retailing before the challenge of his or anyone’s business lifetime hit with COVID-19. And while the center of the city’s shop for vitamins, herbs, teas and other wellness products could have opened last week as Massachusetts eased lockdown regulations, Kanter has had to make the “painful” choice to stay closed. When a business has hundreds of customers a day in a small space, and many of them are dealing with some kind of health condition, he didn’t see a manageable way of opening.

“Nothing we are doing now is easy or remotely secure,” he says. “That noted, speaking as just one business owner, we are doing everything we can to keep our businesses and our awesome employee team going. In many ways it feels as if collectively and individually we are on a precipice. The financial mess, the job losses, the university closings, the numbers of people who have left town (maybe for a long time), the businesses that have already closed for good, and the ones barely open, really the darkened storefronts are very depressing. It is all very haunting and at the same time it all seems daunting.”

Kanter is a member of Cambridge Local First (CLF), a nonprofit network of 400-plus local and independent businesses in the city across the Charles River from Boston and home to Harvard and MIT. Its mission is to “support, promote, and celebrate a ‘local economy community’ by educating the public and government about the significant environmental, economic, and cultural benefits of a strong local economy.” As the pandemic moves on and hopefully out of town the group has had to take on a different role for its members.

“I’d say before the pandemic our goal was to strengthen programming,” says CLF Executive Director Theodora Skeadas, “and our programming is around our three-pronged value proposition, which is educating consumers on the importance of shopping locally, serving as a resource to local businesses and advocating for local businesses at the policy level, and building partnerships.”

All of which was off to a great start. Skeadas prides herself and her organization on marketing. Cambridge Local First has one of the largest social media presences in the city with more than 20,000 followers across various platforms.

“We have been the premier marketing channel for businesses during this time,” Skeadas says. “I don’t think any business, very few have a social media presence bigger than ours.”

Then the pandemic hit.

“What has happened, has actually been fascinating,” she says. “On the one hand, our businesses are experiencing a real existential threat. So we started weekly community calls to lend any advice or help that we could. Then my workload tripled or quadrupled depending on the week. So it has been an interesting opportunity. And the opportunity that I did not foresee is that there’s been significant greater collaboration between business associations in Cambridge.”

That collaboration led to a support group and sharing of best practices for up to 70 Cambridge business owners.

“We’re providing a space for information sharing and peer-to-peer learning,” she says. “And we do it in a way that no other organization has done or is positioned to do. And the reason that we’re so well positioned is that we’re citywide. We’re focused on small businesses. We are approachable and we’re at the intersection of so many and we’re connected to so many different organizations that we can serve as this focus point for so many different stakeholders on that call. We had business owners, we had nonprofit entities, but we also have folks from MIT and Harvard. All these different stakeholders have been coming together.”

Now that Cambridge is reopening, Skeadas and her team are taking it day to day. Her board members and business owners are too.

“As a business owner in Cambridge for nearly 30 years, I have seen some ups and downs in the marketplace,” says board member Rachel Solem. “Like the rest of us, I have never seen anything like this. I know many businesses will not survive it. It is possible that my own will not survive this stretch, regardless of how well we are appreciated, how hard we try. CLF has been an extremely helpful resource as I navigate government loans, the Mass DUA, social media, and the general marketplace. Independent businesses do not have the resources larger businesses do. Owner/operators wear many hats: finance, human resources, marketing, compliance, planning, bookkeeping, customer service policies, etc. CLF has offered assistance in all of these areas, through its education, advocacy web site and social media efforts.”


Gap Embraces AI, Shifts Focus to ‘Continuous Improvement Through Innovation’

After a year spent “fixing the fundamentals,” Gap Inc. is transitioning its focus in 2025 to “continuous improvement through innovation,” Gap President and CEO Richard Dickson said Thursday (March 6).

Speaking during the company’s quarterly earnings call, Dickson said Gap is pursuing innovation in artificial intelligence (AI) and other areas.

The company is doing so after a year in which Gap — the parent company of Old Navy, Gap, Banana Republic and Athleta — saw all four of its brands achieve comparable sales that were flat or positive for the year and saw all four brands gain market share, according to a Thursday earnings release.

Speaking of the company’s “brand reinvigoration” efforts detailed in earlier earnings calls, Dickson said the brands continue to execute on that playbook, are each at different points in the process and have each made improvements.

“We continued to perform while we transform, delivering another quarter that exceeded financial expectations and underscored the meaningful progress we’re driving across our strategic priorities,” Dickson said during the call.

In 2025, Gap Chief Technology Officer Sven Gerjets will continue pursuing plans to leverage technology that he began when he joined the company last summer, Dickson said.

The company formed an Office of AI that is focused on AI innovation across its operations.

“In 2025, we will be developing AI monetization opportunities relative to the consumer experience, product to market, as well as organizational productivity,” Dickson said. “Now, having organized the various ways we can use AI to enable value creation, we’re prepared to mobilize against this framework with intention.”

Gap Chief Financial Officer Katrina O’Connell said during the call that the company is leveraging AI to, among other things, “create more elevated experiences for our customers with things like personalization.”

Looking ahead, Gap expects its net sales to be flat to up slightly year over year in the first quarter and up 1% to 2% year over year for full year 2025, according to a presentation released Thursday.

Addressing tariffs during the call, O’Connell said the company sources less than 10% of its product from China and less than 1% from Canada and Mexico combined.

“We’ve been operating in a highly dynamic backdrop for the last few years, and we’re expecting the same for fiscal 2025,” O’Connell said. “As a result, we’ve taken a balanced view with our guidance and remain focused on controlling the controllable.”