Gap has announced it’s closing more than 225 Gap and Banana Republic store locations this year.
That’s nearly three times more than the company previously announced.
Gap, owner of the Banana Republic brand, had announced in March it would close 90 stores. The drastic increase shows how much retailers are struggling during the coronavirus pandemic.
Gap had a brutal second quarter, which included temporary location closures prompted by the pandemic. However, the second quarter improved significantly compared to the first quarter with online sales nearly doubling year-over-year.
Despite a 95% increase in online sales, though, net sales were down 18% year-over-year, with the company seeing a 48% decline in store sales.
Gap CEO Sonia Syngal said in a statement that the improvement was because the company “rapidly adapted to the changing environment.”
“I’m confident that our purpose-driven lifestyle brands, size and scale, and advantaged digital capabilities are helping us win now and position us for growth in the future,” she said.
Gap says most of the store closures will be mall locations.
Source: Fox 8 News Channel
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