×
7 711
Fashion Jobs
EVERLAST GYMS
Assistant General Manager - Everlast Fitness
Permanent · NEWPORT
ESTEE LAUDER
Tom Ford Beauty & Artisan Fragrances - Area Sales And Education Manager (Midlands)
Permanent · Birmingham
ESTEE LAUDER
Travel Retail - jo Malone London - Account Coordinator - Gatwick.Wdf-North - 37.5h/Week - Full Time, Permanent
Permanent · Horley
ESTEE LAUDER
Estee Lauder - Area Sales & Education Manager (Birmingham, Cambridge & mk)
Permanent · Birmingham
PRIMARK
Visual Merchandising Manager
Permanent · Kingston upon Hull
HARVEY NICHOLS KNIGHTSBRIDGE
Collect in Store Consultant
Permanent · LONDON
PRIMARK
Visual Merchandising Manager
Permanent · KINGSTON UPON HULL
PRIMARK
Visual Merchandising Manager
Permanent · YORK
FRASERS GROUP
Site SEO Manager
Permanent · STRETFORD
FRASERS GROUP
CRM Manager - Sports
Permanent · STRETFORD
SPORTS DIRECT
Front of House Security
Permanent · LONDON
SPORTS DIRECT
Loss Prevention Supervisor
Permanent · LONDON
JOHN LEWIS
Loss Prevention Partner
Permanent · CHELTENHAM
JOHN LEWIS
Loss Prevention Partner
Permanent · DARTFORD
URBN
Urban Outfitters Wholesale Sales Coordinator (Ftc) - London, UK
Permanent · LONDON
SUPERDRY
Internal Audit Manager
Permanent · CHELTENHAM
NEXT
Sales Coordinator - Nottingham Victoria Retail Park
Permanent · NETHERFIELD
NEXT
Delivery Coordinator - Didcot
Permanent · DIDCOT
NEXT
Sales Coordinator - Bristol Imperial Park
Permanent · BRISTOL
NEXT
Sales Coordinator - Coventry Arena Retail Park
Permanent · COVENTRY
NEXT
Delivery Coordinator - Falkirk Central Retail Park
Permanent ·
NEXT
Sales Manager - Bristol Cribbs
Permanent · BRISTOL
Published
Oct 21, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Gap plans Europe exit for 2021

Published
Oct 21, 2020

The ongoing global pandemic is hastening the decline of US apparel giant Gap, which has been struggling on European markets in the last few years. The Gap group, owner of Gap, Banana Republic, Old Navy and Athleta, has announced in a press release it is envisaging closing down its directly operated branches in Europe, where it will try to maintain a presence with franchise partnerships.

The planned closure of Gap stores is likely to take place in Q2 2021, and will occur in countries where company-operated branches exist - in France, the UK, Italy and Ireland, for a total of 129 stores, of which 80 in the UK, according to a document published by the group in August. Also on the cards, the closure of Gap’s European distribution centre in Rugby, UK.


The Gap store in Paris's Haussmann district - Google Street View


Gap is planning to change the way its retail business operates in Europe, turning to a franchise partnership model that would involve transferring elements of Gap's European business to interested third parties, in order to retain a market presence. Gap already operates some 400 franchised stores in 35 countries. However, given the ready-to-wear market’s current situation and the savage cuts prompted by spates of default-driven acquisitions, the question is whether any solid partner will genuinely be interested.

“To the teams that support our European business, I want to thank you for your understanding as we go through this process, and express my appreciation on behalf of the entire leadership team,” simply stated Mark Breitbart, global head of the Gap brand, when he informed the staff in a video conference on October 20. 

In 2019, Gap introduced a global store-closure plan that was set to affect 230 stores. In France for example, this led to the closure of eight shops with a loss of 250 jobs in 2019. There now remain 19 Gap stores in France, of which 10 in Paris, with nearly 500 employees working for Gap’s French subsidiary, according to Le Monde. In summer 2020, Gap announced a further streamlining operation, with 225 closures planned globally for 2021. The brand’s possible exit from Europe is part of this strategy.

The San Francisco-based Gap group has borrowed $500 million to deal with the current crisis. Its global sales lost 18% in Q2 of the current financial year, which closed at the end of August. Store sales slumped heavily, losing 48%, while e-tail revenue increased by 95% in the same period. In Europe, Gap sales lost nearly 50% in the course of a year, dropping from $131 million in Q2 2019 to $70 million in Q2 2020.

Copyright © 2022 FashionNetwork.com All rights reserved.