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.
Gap Inc. plans to close roughly 200 Gap and Banana Republic stores nationwide over the next three years.
The closure amounts to about a 10 percent reduction of the company's total number of Gap and Banana Republic retail outlets after years of declining sales, reported CNN.More news: Samsung Galaxy Note 8 Reviews Are in and They're Thumbs Up
Old Navy and Athleta had 1,051 and 133 stores, respectively, in North America.
"We continue to move with the customer and meet them where they are", Gap CEO Art Peck told analysts Wednesday at a Goldman Sachs Global Annual Retailing conference that was broadcast over the internet.
The company expects about 500 million dollars in expense savings over the next three years by better leveraging its size and scale, cross-brand synergies and streamlining operations and processes.More news: Northern Ireland 'to have different Brexit deal'
And, the company said it will concentrate its expansion in the channels where customers are shopping - namely online and value. That has resulted in sluggish traffic at the stores.
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". It's also been working hard to improve fit - a problem that has long bedeviled the retailer - and it's been trying to rework its fashions.
Gap Inc shares were unchanged in premarket trading Friday.More news: "Coming back to Paris was key" claims Mbappe at PSG unveiling
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