Gap to close 200 stores in next three years

Gap to close 200 stores in next three years

There are now about 2,000 Gap and Banana Republic stores worldwide, according to public filings, so the closures would likely impact about 10% of them.

Gap, the parent company that also owns Old Navy and Athleta, declined to say how many of each brand would close and where the locations are. As a result, Gap planning to open approximately 270 more of those stores at the same time it shutters the others.

The company noted that it expects Old Navy sales to surge to over $10 billion over the next few years.

"We're now shifting our focus to growth", Chief Executive Officer Art Peck said in a statement.

Gap's decision to trim the office and cocktail party appropriate Banana Republic while it grows its trendy, yoga pant and athletic clothing brand Athleta is also indicative of a larger cultural trend.

Meanwhile, Old Navy has done relatively well, with sales up five percent last month.

Louisiana has 15 Old Navy stores, including four in the New Orleans area, but only one Athleta store, located at Lakeside Shopping Center in Metairie.

As a part of its growth initiative strategy, Gap is preparing to reinvest a part of productivity related savings widen its margin.

The company added that it plans to continue making "significant" investments in its online operations, including in artificial intelligence technology.

Related Articles