Massive spread of the deadly pandemic, followed by extended lockdowns, has hit – and is still hitting – many fashion retailers.
Permanent store closures, poor sales, Chapter 11 filing are what one daily hears.
And now the renowned US fashion retailer Gap has announced the closure of majority of its stores in Hong Kong.
Coming few weeks will see the retailer close 5 of its 8 stores in the country. Besides the 2 outlets in K11 mall in Tsim Sha Tsui, the other stores to be shut will be at Hysan Place (Causeway Bay), Albion Plaza (Tsim Sha Tsui) and Festival Walk (Kowloon Tong).
Gap, reportedly said, while some stores will close this month, some others will shut down in August. The retailer added that they see the need and greater value in prioritising and focusing on their resources currently.
The economic recession in Hong Kong that started due to the year-long social unrest in the country followed by the pandemic crisis has hit Hong Kong’s retail – in particular fashion retail – very hard.
Prior to Gap’s announcement to close 5 stores in the country, last week Victoria’s Secret too closed its flagship store in Causeway Bay.
It’s not a good time for Gap! The fashion brand also reported an operating loss of US $ 1.2 billion in Q1 with net sales of all its brands falling significantly.
Also Read: Gap too registers losses in Q1!
Gap has over 3,500 stores worldwide, only behind Inditex Group and H&M, and generates revenue of US $ 16.6 billion.