Gap Announces Closure Of 255 Stores By 2021
Gap has announced that they would be closing an additional…
Gap has announced that they would be closing an additional 255 stores of Gap and Banana Republic along with with additional store closures planned for 2021.
The exact locations of each closure will be announced in October, though most can be expected in malls Chief Financial Officer Katrina O’Connell said in an earnings call Thursday, as reported by pennlive.com. Gap and Banana Republic had more than 1,800 stores globally in 2018, which dropped to 1,643 this year and will decrease even more in 2021.
The brand is even closing Gap’s San Francisco flagship store. It has been seeing major net losses but have been performing better than expectations. The second quarter sales fell 18 percent over year to 3.3 billion dollars, with sales at Gap down 28 percent, Old Navy down 5 percent, Banana Republic down 52 percent and Athleta rose to 6 percent.
Like other brands, Gap also faced a major hit in their business due to the ongoing coronavirus outbreak. Few months ago, they were also sued for for unpaid rent on one of their New York Midtown stores. On the other hand, the e-commerce sales of the brand have doubled compared to the previous year.
The latest 10-year deal signed with Kanye West’s brand Yeezy will bring in more customer base. It is very well known that West’s Yeezy sneakers sell-out quickly.