Gap (GPS) is planning to close over a quarter of its clothing stores in North America. The retailer has announced that it will shut down 175 locations in North America, cutting 250 jobs. The San Francisco-based clothing brand, which also owns Old Navy and Banana Republic, will close some of its European stores this year as well. Investors are hoping that the cuts will make the retailer more nimble. Gap has been struggling to keep up with the latest fashion trends, losing its appeal among younger shoppers. Gap’s clean cut ‘basics’ that used to be the staple of the 80s and 90s wardrobe, have fallen out of favor as shoppers gravitate towards more individual and statement designs. Gap has also seen tough competition from low price retailers such as Forever21 and Uniqlo, which seems to have done a better job of getting millennial shoppers excited about their latest lines and designer collaborations. The store closures will also come with a management shakeup as Gap attempts a brand overhaul. Gap expects its cuts to save around $25 million a year from the closures. The retailer will be left with with around 500 North American locations and 300 outlet stores.
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