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10 September 2017, 03:41 | Jermaine Blake
About 200 Gap, Banana Republic stores to close over next 3 years
As it closes "underperforming" Gap and Banana Republic locations, the company said it expects to open about 270 new Old Navy and Athleta stores.
No store closing list was revealed, but Gap has locations at Sunrise Mall in Brownsville and La Plaza Mall in McAllen, and Banana Republic has stores at La Plaza Mall and the Rio Grande Valley Premium Outlets in Mercedes.
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. Gap declined to specify how many of each brands' stores will close or where the soon-to-be shuttered stores are located.
"Over the past two years, we've made significant progress evolving how we operate", Gap Inc. With much of this foundation in place, we're now shifting our focus to growth.
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The San Francisco-based company says Old Navy is on track to surpass $10 billion in sales in the next few years.
As a part of its growth initiative strategy, Gap is preparing to reinvest a part of productivity related savings widen its margin.
Gap CEO Art Peck spoke to analysts at the conference Wednesday saying that since 2005, the company has closed 650 Gap stores and decreased its overall retail footprint by 5 million square feet - and the moves come as more and more shoppers are buying their clothes online.
And, the company said it will concentrate its expansion in the channels where customers are shopping - namely online and value.
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