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Gap to close 200 stores in next three years

RBR Staff Writer Published 08 September 2017

Fashion retailer Gap will shut down around 200 underperforming Gap and Banana Republic stores across the world over the next three years, as it seeks to focus on its Old Navy and Athleta stores expansion.

Over the coming years, the firm anticipates Old Navy to exceed $10, whereas, Athleta to exceed $1 bn in net sales powered by the growth in online and mobile channels.

As a part of its growth strategy, Gap is aiming to focus on the retail store where customers are shopping more and close the specialty stores where the production rate is significantly low.

The company said that it is planning to unveil 70 net new stores and 270 Old Navy, Athleta and value expressions to its portfolio over the coming three years.

By streamling the existing operations and processes the giant retail firm mentioned that it anticipates around $500m in expense savings in the next three years period.

As a part of its growth initiative strategy, Gap is preparing to reinvest a part of productivity related savings widen its margin.

So far, the company has witnessed double-digit sales growth through its online and mobile businesses.

Gap offers its services through e-commerce platform which includes cross-brand shopping, omni-channel services, pick-up in store, buy online service yet to come and new personalization engine powered by customer data.

By investing in all the above services including artificial intelligence and other data-driven customer experiences Gap is trying to restructure its business in the coming years.

Image:Gap in Hillcrest Mall. Photo: Courtesy of Raysonho @ Open Grid Scheduler / Grid Engine.