Hundreds of Gap and Banana Republic stores prepare to close

10 September, 2017, 15:36 | Author: Julio Duncan
  • Gap shifts focus to Old Navy, Athleta, shutting 200 stores

While comparable sales at Gap fell by 1% and Banana Republic's sales were down 5%, Old Navy saw a 5% increase.

The apparel seller plans to refocus its efforts on the Old Navy and Athleta brands, a shake-up that will involve closing hundreds of stores that carry its namesake and Banana Republic names.

"This is an industry that is not historically rewarded scale and leverage", Gap CEO Arthur Peck told analysts at the conference.

One bright spot for Gap has been Old Navy - its less expensive clothing brand.

By streamling the existing operations and processes the giant retail firm mentioned that it anticipates around $500m in expense savings in the next three years period.


Gap's moves are the latest to reinvent the chain and are being spearheaded by Peck, who took the helm in 2015.

Gap also said Wednesday that its efforts to beef up its digital business have been largely successful, and that it's "built a highly profitable online and mobile business with double-digit sales growth". Over the next three years, the company aims to make significant investment in areas including direct fulfillment capacity, loyalty, personalization, omni-channel services, artificial intelligence and other data-driven customer experiences.

The company has been offering frequent discounts to get shoppers to buy, but recently it's been trying to pull back on price cutting.

Shares of Gap rose nearly 6 percent to $25.39 in midday trading.

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