San Francisco — Gap Inc. plans to close about 175 specialty stores in North America over the next few years, with about 140 closures occurring this fiscal year. These changes will not impact Gap Outlet and Gap Factory Stores. The brand also will close a limited number of European stores.
Following the closures, the brand will continue to serve North American customers through about 800 Gap stores — comprised of 500 Gap specialty locations and 300 Gap outlet stores. The brand will continue to have a robust global presence in more than 50 countries and with about 1,600 company-operated and franchise locations globally.
“Our customers and employees want Gap to win,” says Jeff Kirwan, global president for Gap. “We’re focused on offering consistent, on-brand product collections and enhancing the customer experience across all of our channels, including a smaller, more vibrant fleet of stores.”
Gap also plans to cut its headquarter workforce, primarily in North America, by approximately 250 roles during fiscal year 2015.
“These decisions are very difficult, knowing they will affect a number of our valued employees, but we are confident they are necessary to help create a winning future for our employees, our customers and our shareholders,” says Kirwan, who was appointed to lead Gap in December 2014.
The company estimates an annualized sales loss of approximately $300 million associated with the store closures. The company estimates annualized savings from these actions to be approximately $25 million, beginning in 2016.
Gap Inc. is a leading global retailer under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Gap Inc. has about 3,300 company-operated stores, over 400 franchise stores, and e-commerce sites. For more information, visit www.gapinc.com.
SOURCE: Gap Inc.