(CNN Business) -- Gap will close all 81 stores it has in the UK and Ireland at the end of September and open them entirely online, as the brand adjusts to changes in shopping habits following the pandemic. The US clothing retailer, owner of Old Navy and Banana Republic, said in a statement Thursday that the closures will affect stores operated by the company. He added that there are also plans to sell its stores in France and Italy.
The withdrawal comes after a strategic review of its European business that began last year "with the aim of finding new and more profitable ways" to serve customers in the region, the company said.
Gap announced in October a three-year plan to close hundreds of stores in North America, accounting for nearly a third of its retail presence. Like its rivals, the company has had to adapt to the shift to e-commerce, accelerated by the coronavirus pandemic, which has put brick-and-mortar retailers in jeopardy and contributed to the bankruptcy of established brands like Brooks Brothers.
Gap on Thursday blamed "market dynamics" for its decision to close stores in the UK and Ireland, which it said would take place on a "gradual" basis until the end of September. He declined to comment on how many jobs will be affected.
"We are carrying out a consultation process with our European team, and will offer support and transition assistance to our colleagues in the process of closing stores," the company added.
The company has said it is in talks with a "potential partner" in Italy and negotiating with Hermione People and Brands, the retail arm of property developer FIB Group, to take over Gap's stores in France.
Gap opened its doors in London in 1987, marking its first expansion outside of the United States. It has been present in Ireland since 2006.
"Gap was decades ahead in offering the athleisure styles that have become so popular during the pandemic," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
But the brand has struggled to compete with a growing number of rivals in the "casual space," especially given the "declining footfall" in malls and on the high streets where many of its stores are located. he added in a research note on Thursday.
The physical exit of the brand will be a new blow to British shopping streets, already impacted after the closure of Debenhams, the largest department store chain in the country.
