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Gap Closing 175 North American Stores

Gap Closing 175 North American Stores

Philly.com Article

Gap to close 175 North American stores

Gap (GPS) said Monday it will also close a “limited number” of Gap stores in Europe over the next few years.

Store closures will only affect Gap stores, and not its other brands — Banana Republic, Old Navy, Intermix and Athleta — or its outlet and factory stores, and the brand will continue to run about 1,600 Gap stores worldwide.

The company said the layoffs will mainly affect employees at its headquarters in San Francisco and New York as well as locations around the country. As of January, Gap employed about 141,000 people globally, according to its financial filings.

The brand has been struggling for a few years. Gap reported dismal sales for the first quarter of 2015, down 10% from last year. Its online sales were also down 2% from the same period last year. The company recently shut down its Piperlime branch, which curated shoes and clothing from other brands and was sold primarily online.

Gap’s new CEO Art Peck, who previously helped expand the company’s digital presence, said in Monday’s press release that online growth is part of his vision for turning the retailer’s performance around.