American apparel retailer GAP Inc. will close its Banana Republic stores in Britain as it streamlines its brick-and-mortar presence outside North America in response to weak sales. According to the company, eight Banana Republic stores will be shut in the initial phase and the majority of closures will take place by the end of January next year. However, the apparel brand will continue to serve British customers through a dedicated Banana Republic website.
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Earlier in the month of May this year, GAP stated that it was reviewing its footprint for its Banana Republic and Old Navy chains outside the US market “in order to sharpen its focus on geographies with the greatest potential” and subsequently would shutter all 53 Old Navy stores in Japan this year.
It may be noted here that the sales of the Banana Republic and GAP brands have been falling for some time, with comparable sales at Banana Republic stores down 9 per cent in the second quarter of the current fiscal year.
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GAP Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the GAP, Banana Republic, Old Navy, Athleta, and Intermix brands. Its fiscal year 2015 net sales stood at US $ 15.8 billion. The company’s products are available for purchase in more than 90 countries worldwide through about 3,300 company-operated stores, about 450 franchise stores, and e-commerce sites.
The brand has been struggling in the recent past to draw attention of shoppers turning to online competitors and other fast-fashion retailers such as H&M, Forever 21 and Inditex’s ZARA.
