Back in June 2020, Gap Inc. had said that it would reduce its count of store amidst growing pandemic crisis and that any failed negotiations with landlords could also lead to permanent store closures.
And now in August 2020, the apparel retailer has confirmed that it is set to permanently close down its flagship at 890 Market Street.
Additionally, Gap will also be closing another one at Three Embarcadero Center.
The move is being seen as a part of a business strategy of the retailer to fast adapt to the changing needs of the consumers.
Stating further on the same, the retailer said, while speaking to media, that it is closing the number of stores across Gap. Inc. Besides addressing the under-performing stores, it said that it will also review lease agreements that don’t fit into Gap’s vision.
Early this month, the footfall at Gap and Old Navy stores slumped by as much as 34 per cent Y-o-Y, but if the data from Placer.ai is anything to go by, then the footfall numbers are plateauing.
Gap also said that it is encouraging its employees to find opportunities at other locations within its family of brands.
Despite receiving flak from analysts for its directionless approach at times, many feel Q3 may see the retailer post significantly better sales numbers.
It will be interesting to see how Gap works out its strategies in the coming quarter and second half.
