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Gap Eyes Closing Hundreds of Underperforming Stores
San Francisco-based Gap Inc. may shutter hundreds of underperforming stores in an effort to stem slipping sales. The closures are expected to be weighted toward Gap brand and Banana Republic stores. The company reported continued solid performance from Old Navy, Banana Republic and Athleta brands leading into the important holiday season.
Gap Inc.’s Art Peck says, “We are clearly not satisfied with the performance of Gap brand. We know this iconic brand is important to customers, and we are committed to taking the bold and necessary steps to ensure that it delivers value to shareholders.”
The company’s third quarter comparable sales were flat, compared with a 3% increase last year. Comparable sales included:
– Gap Global: negative 7% versus positive 1% last year
– Old Navy Global: positive 4% versus positive 4% last year
– Banana Republic Global: positive 2% versus negative 1% last year
The company has 3,688 store locations in 43 countries, encompassing 3,218 company-operated, and 775 Gap-branded stores globally.
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