American fashion retailer Gap has decided to do yet another large-scale reduction of retail chains.
The largest American fashion retailer Gap has decided to carry out another large-scale reduction in retail chains. According to the company's press service, 225 Gap and Banana Republic stores will close around the world by the end of 2020, and in 2021 more closures are expected.
As of August 1, 2020, the global network managed by Gap Inc. included more than 3,800 stores under names Banana Republic, Old Navy, Athleta, Janie, and Jack. Of those, 1643 stores accounted for two key chains of retailers, writes Business Insider.
The company promised to present a more detailed plan to close stores at a meeting with investors on October 22, 2020. It is known that a significant part of the closure will be for stores located in shopping and entertainment centers.
Over the past few years, Gap has already closed several hundred stores. In particular, in early 2019, it was announced plans to reduce 230 outlets within two years. Still, the goal was adjusted upward due to the critical situation in the market against the background of a problematic epidemiological situation.
Last quarter Gap reported an 18% drop in net retail sales, despite an almost twofold increase in revenue through online channels. The most successful brand in the past month was Athleta, whose net sales grew by 6% and comparable - by 19%. For comparison, the revenue of Gap decreased by 28%, and Banana Republic - by 52%. To date, around 90% of retailers around the world have resumed operations after the restrictions were lifted.
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