Gap to Close 200 Banana Republic, Gap Stores
September 06 2017 - 11:02AM
Dow Jones News
By Khadeeja Safdar
Gap Inc., nodding to changing tastes among its shoppers, said it
would close about 200 Banana Republic and Gap stores over the next
three years, while opening about 270 Old Navy and Athleta
locations.
The closures, which the clothing retailer Wednesday said would
focus on underperforming, "lower-productivity" locations, represent
about 10% of Gap's global Banana Republic and flagship stores,
according to its financial results reported in August. Across all
its apparel brands, it has about 3,600 company-operated and
franchise stores.
"We will leverage our iconic brands and significant scale to
deliver growth by shifting to where our customers are shopping --
online, value and active," Gap Chief Executive Art Peck said.
It expects to save about $500 million over that period as a
result of the closures and other operational changes.
Old Navy, Gap's budget brand and biggest division by sales, has
been a bright spot for the company, and Gap said it expects Old
Navy sales to exceed $10 billion over the coming years. It expects
Athleta, its athletic-wear brand, to exceed $1 billion in sales
during that time.
Banana Republic and the company's namesake Gap brand haven't
fared as well in recent years. Sales at both fell last quarter
compared with the year-earlier period.
Write to Khadeeja Safdar at khadeeja.safdar@wsj.com
(END) Dow Jones Newswires
September 06, 2017 10:47 ET (14:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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