American clothing retailer Gap announced on Wednesday that it has proposed to close all stores in the United Kingdom and Ireland in stages from the end of August to the end of September, but will continue to operate its online stores.
According to the British “Guardian” news, Gap plans to close a total of 81 stores. This closure is expected to reduce more than 1,000 jobs.
It is understood that these measures by Gap are part of the strategic review started last year. The company plans to close Gap Specialty and Gap Outlet stores in the UK and Ireland by the end of September, but will maintain its e-commerce business in Europe.
In addition, Gap also said it would sell its stores in Italy and France and run them by different franchisees.
Gap said it is negotiating with Hermione People and Brands, the retail arm of FIB Group, to take over its Gap stores in France, and is discussing with partners the sale of Italian stores. .
Gap’s strategic adjustment has already begun. In the next three years, the group will continue to adjust its retail stores and close brand stores such as Gap and Banana Republic that are no longer profitable. By the end of 2023, about 80% of Gap stores will be opened outside shopping malls.
Data show that as of the end of the first quarter, Gap Group had 3,571 stores in more than 40 countries, of which 2,997 were directly operated stores.
Gap emphasized that it will fully launch digital transformation, and online will be the focus of Gap. The proportion of online revenue is expected to exceed 50% by the end of 2023.
According to its first-quarter financial report, during the current period, Gap Group’s online sales increased by 82% compared with the same period in 2019, accounting for 40% of total business revenue. In comparison, GAP Group’s store sales fell 16% compared with the same period in 2019 due to the impact of the epidemic and strategic store closures except for the US market. </p
