Tags: gap | closing | stores | laying off | headquarters

Gap Closing 175 Stores in US, Laying Off 250 at Headquarters

By    |   Tuesday, 16 Jun 2015 11:00 AM

Gap Inc. announced Monday that it is closing 175 stores in North America, 140 of those this year, while laying off 250 people at its headquarters in San Francisco. The company wouldn't say how many people will be losing their jobs at the retail level.

It will cost Gap $300 million in annual sales by closing the targeted stores, reported Fortune magazine. The stores made a little under $4 billion in revenue in North American in 2014, but sales fell.

 


Gap chief executive Art Peck said in a statement he hopes the closings will help Jeff Kirwan, Gap's global president, boost sales once again.

"Returning Gap brand to growth has been the top priority since my appointment four months ago – and Jeff and his team bring a sense of urgency to this work," Peck said in a company statement. "Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers."

Gap said the closings would "not impact Gap Outlet and Gap Factory Stores." The company said it will have 800 Gap stores remaining, comprised of 500 Gap specialty locations and 300 Gap outlet stores.

Forbes said in 2011 that Gap had 1,389 stores worldwide, 968 of those in North America, 193 in Europe and another 228 in Asia.

"We suspect this won’t be the last of it," wrote Paula Rosenblum of Forbes. "This begs the question: What has gone so horribly wrong? The company has certainly had a revolving door of executives and merchants. … Like other logo-driven companies (think Abercrombie & Fitch for one), the original styles grew tired. Today's teenagers are less enamored with logos and far more interested in fast fashion."

Related Stories:

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
TheWire
Gap Inc. announced Monday that it is closing 175 stores in North America, 140 of those this year, while laying off 250 people at its headquarters in San Francisco. The company wouldn't say how many people will be losing their jobs at the retail level.
gap, closing, stores, laying off, headquarters
315
2015-00-16
Tuesday, 16 Jun 2015 11:00 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved