Apparel chain GAP announced closures of 65 company-operated stores, compared to its previous forecast of about 50 stores. The company is expecting a further drop in traffic at stores during the crucial holiday shopping season. The brand recently decided to close its Banana Republic stores in UK.
Sabrina Simmons, outgoing Chief Financial Officer, GAP commented, “Given that challenging traffic trends have continued, we are investing meaningfully in marketing across our portfolio brands during the holiday season.”
Also Read – GAP out with October sales report
The company reported its seventh straight quarterly sales decline in the three months ended 29th October 2016 as demand for its GAP and Banana Republic brands remained sluggish. GAP had been trying to replicate the success of its low-end Old Navy brand at its GAP and Banana Republic chains since last year.
Traditional apparel chains are struggling with the growing popularity of online retailers and fast-fashion chains such as H&M, Forever 21 and Inditex’s Zara, which are known for offering trendier clothes at cheaper prices.
GAP 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. The company has 3,730 retail locations around the globe.
