Devaluing your own brand

Every day it seems I get an email deal from the Gap. It's gotten to the point were if it's not 40% off sale, than I'm not buying it. It makes me wonder what they're thinking. Because if you keep discounting yourself, why would anyone pay full price?

Gap redoes Logo. Look what happens.

Gap recently redid their identity. And while I see traces of their old mark (in the tacky gradient square), it seems that this was a wasted opportunity to refresh their highly recognizable mark.
And without knowing exactly what the client wanted (because as I've said before, it starts by listening)
I can't help but feel that this has positioned (or repositioned) the gap as a lower line. Closer to Old Navy, one of the other companies under the huge corporate umbrella that also carrier Banana Republic, Piper Lime, and Athleta.