Gap exploring closure of company-operated stores in Europe

22 Oct '20

2 min read

Pic: Gap Inc

Gap Inc, a leading global retailer offering clothing, accessories, and personal care products under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands, is exploring the possible closure of its company-operated Gap stores in the UK, France, Ireland and Italy at the end of the second quarter in 2021.

In addition, the company is also reviewing its warehouse and distribution model and its Gap and Banana Republic company-owned e-commerce operations in Europe. "A possible outcome is the closure of our EU distribution centre in Rugby," Mark Breitbard, head of Gap Brand Global, said while sharing with the tea that the company is starting a strategic review of options for its Gap business in Europe.

"Gap has what it takes to win again. With strong brand awareness and a large, active customer base, we are focusing on harnessing the power of Gap brand in asset-light ways. Going forward, we will look to transform our business model through partnerships that grow and amplify our global reach.

"As we conduct the review, we will look at transferring elements of the business to interested third parties as part of a proposed partnership model expansion. Franchise partnerships are a strong and cost-effective way to amplify the brand. Through franchise, Gap brand reaches customers in 35 countries with more than 400 stores and 14 e-commerce sites," said Breitbard on the company website.

"We are committed to sharing more as we thoughtfully work through this process. While the work is tough, we have our eyes set on leveraging our brand power to deliver modern American optimism to customers around the world," added Breitbard.

Fibre2Fashion News Desk (RKS)

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