Apparel / Textiles & Accessories

American clothing retailer Gap announced on Wednesday that it has proposed to close all stores in the UK and Ireland in stages from the end of August to the end of September, but will continue to operate its online store.

According to the British "Guardian" news, Gap plans to close a total of 81 stores, and this closure is expected to reduce more than 1,000 jobs.

It is understood that these initiatives by Gap are part of the strategic evaluation that began last year. The company plans to close the UK and Ireland Gap Specialty and Gap Outlet stores by the end of September, but will maintain its e-commerce business in Europe.

In addition, Gap also said that it will sell its stores in Italy and France, which will be operated by different franchisees.

Gap said that it is negotiating with Hermione People and Brands, the retail branch of FIB Group, to take over its French Gap store, and is discussing the sale of Italian stores with partners.

Gap's strategic adjustment has already begun. In the next three years, the group will continue to adjust retail stores, closing the no longer profitable Gap and Banana Republic and other brand stores. At the end of 2023, about 80% of Gap stores will be opened outside shopping malls.

Data shows that as of the end of the first quarter, Gap Group has 3,571 stores in more than 40 countries, of which 2,997 are directly operated stores.

Gap emphasized that digital transformation will be fully launched, and online will be the focus of Gap. The proportion of online revenue is expected to exceed 50% by the end of 2023.

According to its first-quarter financial report, for the current period, Gap Group’s online sales increased by 82% compared to the same period in 2019, accounting for 40% of total business revenue. In contrast, due to the impact of the epidemic and strategic store closures outside the U.S. market, GAP Group's store sales fell 16% compared to the same period in 2019.