Gap to close stores in US and expand in China
Tuesday, 18 October 2011
Gap is to close 189 stores in the US by 2013. Meanwhile, the largest American fashion retailer, which also operates Old Navy and Banana Republic, plans to expand the number of stores in China to roughly 45 from its current 15 locations. Gap Inc.
, the largest U.S. clothing chain, detailed plans Thursday 13th to close stores in the U.S. while expanding globally, according to an Associated Press report. The San Francisco-based company said it plans to close 189 stores, or 21 percent of the chain, in the U.S. by 2013, the AP report says."Ov
er the next 26 months, we'll look store by store at our specialty fleet and determine which stores meet the standards we've set for our brand," Art Peck, president of Gap North America, told the Associated Press. "This is a continuation of our work since 2007."While closing stores in the U.S., the struggling retailer, which also operates Old Navy and Banana Republic, plans to expand the number of stores in China to roughly 45 from its current 15 locations. As explained by the company´s executives, the moves are related to the company's previously stated goal of reducing its overall square footage in the U.S. by 10 percent from 2007 to the end of 2013, while roughly doubling revenue from outside of the U.S. to 30 percent by the end of the same year.
"The combination of our global strategy and formidable growth platform puts us in a strong position to expand our reach into the top 10 apparel markets worldwide," said Glenn Murphy, Gap's CEO, in a statement. "In North America, we're taking a number of steps to improve sales in the near-term, and I'm confident that with a strong management team in place, we're well positioned for sustained growth across the business."
Just to place in context Gap´s decision, it is worth to remember that its sales in the U.S. have eroded considerably since it drove America's love of khakis and all things business casual in the 1990s because of growing competition from specialty retailers like Abercrombie & Fitch and tougher competitors from Europe, as Zara or H&M.
Angela González-Rodríguez
