Atlanta fashionistas, retail apparel giant GAP has announced that the popular brand is planning to reduce the number of Gap brand stores to 700 in North America, roughly closing over a third of their existing stores by the end of 2013.
San Francisco based Gap Inc., which is known for its upscale casual clothing, says it is forced to shut down some 34% of its North American stores to 700 by the end of 2013 in order to focus on its international expansion.
That in no uncertain terms means either that competition is tough in the United States and Canada for the buyer’s dollar or that other markets are more lucrative as primarily American incomes are ever diminishing!
Gap Inc. has explained that their market share in the United States has been lost over the years to more trendier retail chains. They however, expect their sales to grow modestly via its smaller retail locations, online sales as well as outlet locations.
Their Old Navy stores, which are lower priced but with similar fashions, will however number about the same in North America but the locations themselves will probably downsize their square footage to the tune of about one million less square feet!
So that means that the familiar ambience of the wide, spacious, semi-industrial warehouse common to every Old Navy store will be a thing of the past.
It is comforting to learn that GAP and Old Navy will still be around via online and outlet channels and that could mean further savings to the buyer online who purchases via sales and discounts incentives and at outlets at lower prices!
Comments