Gap Brand to Shutter a Quarter of Stores in Turnaround Bid
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About 175 underperforming Gap stores will close in North America as part of a comeback plan for the business, which has posted sales declines for five straight quarters and lagged behind its sister chain Old Navy.
The company will shutter 140 of its stores before the end of the fiscal year in January, according to a statement Monday from the San Francisco-based retailer. When complete, the cutbacks will leave the brand with 500 full-price stores and 300 outlet locations in the region. Gap Inc. is also eliminating 250 corporate jobs as part of the move.
“Some of the stores that we’re currently in don’t represent the best of our brand,” Jeff Kirwan, global president for Gap, said in an interview. “We want to make sure we don’t have so much of a disparity.”
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