Gap and Banana Republic firmly over 50 stores nationwide
The leaders of Gap Inc. made the announcement of the mass closure during a recent call for results.
One has the impression that there is news from another store closure every day - and no retailer, large or small, is immune. Walmart recently confirmed that it closed stores Across the country Throughout the month of March, and Best Buy has just closed 17 locations Last week, with dozens of additional closures on the way. Gap Inc., who owns The Gap, Athlema, Old Navy and Banana Republic, is only the last retailer to announce that he reduces his retail footprint. According to a recent report on gains, more than 50 Gap and Banana Republic stores are on the cup block this year. Read the rest to find out more about these upcoming closings.
Read this then: Bath & Body Works closes around 50 stores this year .
The company reduces brick and mortar stores.
During a March 9 profit call ,, Katrina O'Connell , the financial director of Gap Inc., confirmed that the company Clôure "50 to 55 Gap and Banana Republic stores" in North America this year.
O'Connell did not provide additional details on exactly when and where these stores close.
Better life Contacted Gap Inc. for more information on closures, but has not yet heard.
Hundreds of stores have left since 2020.
O'Connell noted that these closures are part of a wider initiative. "We stay on the right track to reach our goal of closing 350 Banana Republic and banana stores in North America by 2023 and ended the year [the year] 2022 having reached almost 90% of This goal, "she said.
The company has a page on its website dedicated to its "transformation of the store fleet in North America", explaining that Gap Inc. is " looking for thoughtful "In his real estate portfolio to identify the closing stores. The retailer announced for the first time his intention to close around 350 stores in October 2020, keeping online" in order to have a smaller and more store fleet healthy ".
According to a slideshow prepared for the call for profits, at the end of 2022, there was 912 Total Banana Republic and Gap Stores in North America, a sharp decline compared to the Open of 1,216 in 2019 and 1,027 opened in 2020.
Some stores have already closed this year. In January, the locations of the Banana Republic closed their doors to Harrisburg, Pennsylvania; Stamford, Connecticut ; And Kentwood, Michigan. In the meantime, Old navy The stores in Chicago and Solon, Ohio, were also axed at the start of the year.
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Gap Inc. had a "difficult year".
The closures follow what Gap Inc. called "a difficult year". During the last quarter, sales in the four clothing brands were down and overall store sales decreased by 5%, O'Connell said. Net income losses For the quarter totaling $ 273 million, up considerably, against $ 16 million reported the previous year, by Wall Street's journal . AE0FCC31AE342FD3A1346EBB1F342FCB
In light of this, the retailer seeks to reduce the costs by $ 300 million, mainly by leaving the steering positions. The role of responsible for growth occupied by Asheesh Saksena has already been eliminated and the president of athletics Mary Beth Laughton On the left yesterday March 9.
The company also has inventory remains in Old Navy - according to the Wsj Most of the time, the surplus results from a failed initiative for making clothes for all buyers. Company sales were also assigned by the end of a partnership between Gap and the controversial rapper Kanye West . Following the terminated contract, Gap Inc. lost around $ 16 million, according to the Wsj .
The leaders of Gap Inc. expect net sales to continue on a downward trend in 2023. During the call for profits, O'Connell said that the company adopted a "prudent approach to manage Our company in the light of the continuous environment and a continuous uncertain macro ".
This is not all bad news.
The company's financial situation may seem dark, but there is still hope for loyal customers. According to O'Connell, two Gap Inc. brands will soon have more brick and mortar stores to buy.
While the financial director has conceded that there will be "less opening in store", she added that the company "plans to open 30 to 35 naval stores and athletes in total" this year. As with fence stores, O'Connell has not included details on the moment or when the new locations will open.
