Home / Knowledge / News / Apparel/Garments / Gap brand to streamline workforce & store fleet
Gap brand to streamline workforce & store fleet
Jun '15
Following a thorough evaluation of its business and operations, apparel marketer Gap Inc, plans to right size its Gap brand specialty store fleet and streamline its headquarter workforce, primarily in North America.

“This is part of the comprehensive effort to deliver more consistent and compelling product collections and engage customers across all channels,” it said in a press release.

“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,” said Gap Inc CEO Art Peck.

“Customers are rapidly changing how they shop today, and these moves will help get the Gap brand back to where we know it deserves to be in the eyes of consumers,” Peck added.

The Gap brand will close about 175 specialty stores in North America over the next few years, with about 140 closures happening in this fiscal.

These changes will not impact Gap Outlet and Gap Factory Stores and in parallel with these moves, the brand will close a limited number of European stores during this period.

Following the fleet optimisation effort, the brand will continue to serve North American customers through about 800 Gap stores, comprised of 500 Gap specialty locations and 300 Gap outlet stores.

The brand will continue to have a robust global presence in more than 50 countries and with about 1,600 company-operated and franchise locations globally.

“Our customers and employees want the Gap brand to win,” said Jeff Kirwan, global president for Gap brand.

“We are focused on offering consistent, on-brand product collections and enhancing the customer experience across all of our channels, including a smaller, more vibrant fleet of stores," he too added.

Since Kirwan was appointed to lead Gap brand in December 2014, he has rebuilt the leadership team and implemented an aggressive agenda designed to strengthen the brand.

“The team is driving towards a clear, on-brand product aesthetic framework focused on elevated American style, while also rebuilding the brand’s product operating model,” the apparel marketer informed.

To speed decision making and responsiveness, Kirwan also announced decisions meant to align Gap’s organisation in support of its new product operating model.

This will result in the reduction of the brand’s headquarter workforce, primarily in North America, by approximately 250 roles during the current fiscal.

Kirwan observed, “These decisions are very difficult, knowing they will affect a number of our valued employees, but we are confident they are necessary to help create a winning future for all.”

The company estimates an annualised sales loss of approximately $300 million associated with the store closures.

Additionally, the company estimates one-time costs associated with these actions to be in the range of approximately $140 million to $160 million, of which about $55 million to $75 million is non-cash. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search