Gap continues restructuring with new round of store closures
Jan 30, 2020
In the latest shake up at Gap Inc, the San Francisco-based retailer has closed 40 Gap stores across the globe.
Located throughout the United States, Canada and the UK, the stores were shuttered on Sunday, as part of the company's previously announced plans to close a total of 230 Gap stores over the next two years.
Closed locations include Gap stores in Tuscon, Arizona; Emeryville, California; Long Beach, California; Victoria, British Columbia, Canada; Toronto, Canada; London, England; and Perth, Scotland, among others.
The closings come as part of Gap Inc.'s greater restructuring plan, which had included plans to spin off its successful Old Navy brand. However, following the exit of Gap Inc. CEO Art Peck in November 2019, the company announced earlier this month that it would no longer pursue the spin off, a statement which caused company shares to rise 9% on January 16.
For now, the company's plans to withdraw the Old Navy brand from China this year -- in favor of focusing on its North America market to boost sales -- still stands.
Along with Peck's departure, the company was hit with yet another executive shift this week, when Gap Inc.'s chief marketing officer Alegra O'Hare left her role after just 11 months.
While Gap stores continue to close, the company plans to open new brick-and-mortar locations for its other brands, including Athleta and Old Navy.
Gap Inc. is set to announce its fourth-quarter and full-year fiscal 2019 financial results on February 27, 2020.
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