Iconic US clothing firm Gap has announced that it will close all its stores in the UK and Ireland by the end of 2021.
With the measure, the brand hopes to boost its business within these two European nations to an exclusively online model.
According to a statement, the closures of physical stores will be carried out in stages from September with a total of 81 branches, although it is also considering closing or selling its points of sale in France and Italy.
The American retailer, owner of brands such as Old Navy and Banana Republic, asserted that this withdrawal is part of a business strategy in Europe.
Meanwhile, it will provide “transition support and assistance” to collaborators, after being active in the United Kingdom since 1987 and in Ireland since 2006, respectively, where it became one of the most popular brands for several years.
The fall is also due to the diversity of e-commerce sites that have competed with the brand and its commercial offer.
“The e-commerce business continues to grow and we want to meet our customers where they are shopping, where we intend to be the first digital business,” he stresses.
As you may remember, since October 2020 Gap announced a plan to close hundreds of stores in the United States, at a third of its footprint, giving way to points of sale at Wal-Mart or e-commerce, which fell like a bucket of water cold to traditional retail, which was used to measuring success in store openings.
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In addition, the brand collaborates with rapper and designer Kanye West, which has been successful in the process of removing all its underperforming outlets within the malls in order to fuel more profitable growth in the future.
As of the first quarter (1Q21), GAP's sales exceeded pre-pandemic levels, thanks to the strength of Old Navy and Athleta.
Despite the announcement, its shares rose 3% in premarket trading. The stock has gained 130% in 12 months and has a market capitalization of $11.8bn.
Finally, GAP reported that it is in talks with a potential partner in Italy and in talks with Hermione People and Brands, the retail arm of property developer FIB Group, to buy Gap stores in France.
With information from Mercad20.com
