Gap to close more than 200 stores amid worldwide restructuring
High street clothing stalwart Gap is closing more than 200 stores as part of a worldwide restructuring programme.
The retailer’s San Francisco-based parent company, Gap Inc, is splitting into two companies, one of which will consist of the eponymous brand and others including Banana Republic.
A second company will solely house its Old Navy brand, which has been out-performing its stablemates.
Gap Inc said it was undertaking the restructuring exercise in an effort to “revitalise brand health”.
The company has not said where shops will shut or how many jobs will be affected, although all 230 closures over the next two years will be of Gap stores.
At the end of 2018 there were 1,242 company-operated Gap shops worldwide with 152 in Europe, the majority of which were in the UK.
Art Peck, president and chief executive of Gap Inc, said the company knows “what we need to do to win”.
He added: “Combined with the separation we announced today, we will be well positioned to leverage the power of our brands and the talented teams that lead them to accelerate the pace of change, improve execution and deliver profitable growth.”
Gap Inc closed all eight of its Banana Republic stores in the UK in 2016.
High street shops have been battered in recent years by a challenging sales environment caused by rising costs and changing consumer habits.