Parent company Gap Inc., which also owns Old Navy and Banana Republic, announced the closure of approximately 350 combined locations this year through the end of next year.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: BusinessWire.com, ScrapeHero.com, and Wikipedia.org.
Earlier this week, NewsBreak published my article on the Banana Republic chain, ”Plans For Banana Republic Closings in 2022,” which detailed business strategies presently being undertaken by Gap Inc., its parent company, as it regarded both Banana Republic and Gap stores.
The article included an excerpt from a BusinessInsider.com piece, entitled “Gap and Banana Republic are Closing Another 350 Stores as Retailers Flee Malls in the Second Wave of the Retail Apocalypse, that disclosed the following: There were 1,216 total Gap and Banana Republic locations in the U.S. and Canada in 2019. But by the end of 2023, there are expected to be 870 stores left. As of June 15, at least 103 Banana Republic stores have been shut down since the beginning of 2020, according to data from Gap.
The BusinessInsider.com piece further stated the news came after the company previously confirmed plans to close more than 225 Gap and Banana Republic stores in 2020.
As for today’s numbers, according to ScrapeHero.com: There are 433 Gap locations in the United States as of June 28, 2022. The state with the most number of Gap locations in the US is California, with 63 locations, which is 14% of all Gap locations in America.
Time will tell if the planned closures will impact one Gap Inc. chain more than the others.
Let us explore further.
The State of Gap, 2022
Wikipedia features a comprehensive overview of the Gap clothing chain, which was founded in 1969: The Gap, Inc. commonly known as Gap Inc. or Gap (stylized as GAP), is an American worldwide clothing and accessories retailer. Gap was founded in 1969 by Donald Fisher and Doris F. Fisher and is headquartered in San Francisco, California. The company operates six primary divisions: Gap (the namesake banner), Banana Republic, Old Navy, Intermix, Athleta, and Janie and Jack.
Regarding the namesake Gap store chain, BusinessInsider.com published “The Rise and Fall of Gap, One of the Most Iconic and Beloved American Retailers,” which I am including here as an archived piece (published in November, 2019) for perspective: When Gap announced earlier this month that its CEO, Art Peck, was unexpectedly stepping down from the company, it was just the latest sign of an uncertain future for the retailer in a year filled with sales woes and business missteps. The sudden executive shakeup came hand-in-hand with a report of particularly disappointing third-quarter sales, including a 4% year-over-year drop in comparable sales across the entire Gap brand portfolio. Its namesake Gap brand saw the largest decline, with a 7% dip in comparable sales, while Old Navy and Banana Republic sales sank by 4% and 3%, respectively.
As Gap and its parent company confronted their financial challenges, the pandemic hit in 2020, weeks following BusinessWire.com’s publication of its story.
The current spate of closures have resulted largely from issues related to said pandemic.
The upcoming closures announced by the company as being undertaken throughout 2023 are strategic in nature. New business models and focus will determine the success of the endeavor.
I will share updates here as they are reported.
Thank you for reading.