Gap Inc., the American apparel bigwig, is considering shutting down its stores in Europe, with focus on saving cash in these tough times.
The retailer, which had 129 Gap brand stores all over Europe in July 2020, has reportedly stated that it now plans to close its outlets in the UK, Italy, France and Ireland by the middle of next year.
Substantiating further on the same, the retailer said on Tuesday (20 October) that some parts of Gap’s business in Europe could be transferred to third parties in a partnership model.
Owing to tough competition from Zara and H&M lately – not to mention the terrible impact of the pandemic – Gap has been struggling with its bricks-and-mortar stores in Europe.
With cases surging in Europe again, it could just get from bad to worse for the retailer in the days to come.
The retailer, therefore, has also said that it will be reviewing its warehouse and distribution model as well as Gap and Banana Republic-owned digital business in Europe.
The focus could be more on e-commerce now!
Back in August 2020, Gap had warned closure of lots of stores in 2021 and the recent decision to close stores in Europe seems to be the beginning.
It had also said that 2020 would see Gap closing around 225 Gap and Banana Republic stores – which was 3 times of what the retailer had predicted at the start of the year.
Founded in 1969, Gap generates revenue of US $ 16.6 billion.