Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Gap Looks at Closing Stores in Some European Countries

The retailer to is hoping to save cash while dealing with a sales slump brought on by the pandemic.
Gap store | Source: Shutterstock
By
  • Reuters

SAN FRANCISCO, United States — Gap Inc is considering closing stores in some European countries, as the apparel retailer looks to save cash while dealing with a sales slump brought on by the Covid-19 pandemic and competition from fast-fashion companies.

The San Francisco-based company, which had 129 Gap brand stores in Europe at the end of July, said late on Tuesday options being explored include the possible closure of outlets in the United Kingdom, France, Ireland and Italy by mid-2021.

The move comes as Gap struggles with out-of-fashion styles, which has pushed shoppers towards apparel brands like Zara and H&M. The coronavirus crisis has compounded troubles by stifling sales at brick-and-mortar sales across the globe.

However, online sales of Gap Inc's Old Navy and Athleta brands have surged since the start of the pandemic.

ADVERTISEMENT

The company also said it was reviewing its warehouse and distribution model and its Gap and Banana Republic-owned e-commerce operations in Europe.

Parts of Gap's European business could be transferred to third parties in a partnership model, the company said.

Earlier this year, Gap said it planned to close over 225 unprofitable Gap and Banana Republic stores globally as a part of a restructuring plan.

By Uday Sampath; editor: Ramakrishnan M.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

What a Fashion Company Is Worth Today

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


What’s the Plan at H&M?

The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections