- Gap Inc. closes more than 225 Gap and Banana Republic stores this year, it said in the revenue release on Thursday.
- The company had already planned to close a number of stores this year, but the 225 figure is larger than originally planned.
- Gap’s net sales for the quarter fell 28%, while Banana Republic’s net sales fell 52%.
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Gap Inc. said in its four-year release on Thursday that it expects to close more than 225 Gap and Banana Republic stores this year, with more to come in 2021.
As of August 1, there were 1,643 Gap and Banana Republic stores. The 225 closures are net of new store openings. Some of these stores are already closed for good.
In total, Gap Inc. operates. 3,814 store locations in 42 countries, including stores under the brands Gap, Banana Republic, Old Navy, Athleta, and Janie and Jack.
Managers said on the revenue call that since the closures have affected the Gap and Banana Republic markets, many of the shuttering stores are located in malls.
They said the company would provide more details at a virtual investor meeting on October 22.
Gap Inc. has closed hundreds of stores in recent years. In February 2019, it said it would close 230 Gap stores over the next two years, with about half of those closures that year. With Thursday’s update on store closures, the company is reducing its store fleet more than originally planned.
Gap Inc. reported a similar sales increase of 13% for the quarter. Net sales fell 18%, while online sales grew by 95%. Athleta was a bright spot for the company, with net sales up 6% and similar sales up 19%.
However, the Gap and Banana Republic brands are struggling. Gap’s net sales decreased by 28%, while Banana Republic’s net sales were 52%.
“Banana Republic continues to focus on taking action to adapt to consumer preferences and improve inventory, as the shift to casual fashion during the stay-at-home requirements has left the market value of work colors,” he said. said the company in its release of revenue.
Gap Inc. has temporarily closed all its stores this spring in response to the coronavirus pandemic. It said Thursday that about 90% of its stores have now reopened.
