It looks like clothing companies are really feeling the pinch of online retailers this year. We announced yesterday that Victoria's Secret will be closing 53 stores in North America this year due to declining sales.
Now, Gap has also announced they will be closing some of their brick-and-mortar locations, as well... and a good deal more than 53.
The fashion-basics brand has plans to close 230 locations in addition to splitting-off from Old Navy, which will now function as an independent company.
TL;DR In an effort to revitalize the company, Gap Inc. is splitting off from Old Navy, which will become its own independent company. They also plan to close 230 Gap locations over the next two years.
In addition to closing 230 locations over the next two years, the CBC also reported that the company has plans to split Gap Inc. in two.
This is in an effort to allow Old Navy, which is currently part of the Gap Inc. parent company, to flourish independently.
According to the CBC, Gap Inc's chairman, Robert Fisher believes Old Navy's customer base has diverged enough from the parent company to demand a separate business model.
The hope is this split will allow both companies to thrive independently.
While we don't know which stores will be closing over the next two years, it's safe to assume a handful of Canadian locations will get the chop.
Based on second-quarter reports from Gap Inc., there are 806 Gap locations in North America, 320 in Asia and 155 in Europe. The report also indicates that 7 North American Gap locations were closed at the end of August 2019, and 2 locations in Asia and Europe respectively.
No word on whether the closures will be worldwide or focused on North Amerian locations.
A good number of the closures are expected to happen throughout 2019, and the remaining closures will happen in 2020 as leases for the rental properties expire.
There are currently three Gap locations in Montreal. On at Le Centre Eaton, one on St. Denis and one at Le Centre Rockland.