Gap to close 34% of namesake U.S. stores by end of 2013

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    Oct 13, 2011 11:30 PM GMT
    http://latimesblogs.latimes.com/money_co/2011/10/gap-close-one-third-namesake-us-stores.html

    Gap Inc. is closing stores and downsizing others in the U.S. as it focuses on international expansion, the San Francisco company said Thursday.

    The long-struggling apparel giant plans to reduce the number of Gap brand stores in North America to 700 by the end of 2013, a 34% decrease in the number of those stores when compared to the end of 2007. It didn't specify which stores would close.

    The company's Old Navy brand will have roughly the same number of stores in North America, but the locations will continue to downsize in terms of square footage. By the end of fiscal year 2013, Old Navy "expects to potentially remove" another 1 million square feet.

    "In North America, sales are expected to grow modestly on its smaller, healthier specialty store fleet supplemented by sales growth in its online and outlet channels," the company said in a statement.

    Gap Inc. has suffered from weak sales for years as shoppers have turned to trendier rivals to shop. Although it has had some success in turning things around -- namely a line of so-called premium denim that launched at Gap stores two years ago -- analysts say many of its fashions, such as women's tops, have underperformed.
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    Oct 13, 2011 11:36 PM GMT
    Due to the bad economy, more and more have turned to the bargains at Wal-Mart, Target, etc. Name brands don't mean a lot to me, because it's virtually all imported. Stein Mart has some good deals and I like to shop there. Chic no, but I believe in buying what my budget will allow, not what the TV ads say I need.
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    Oct 13, 2011 11:45 PM GMT
    GAP has been struggling for years. Cheap clothing imports that fall apart at the second wash from GAP and Old Navy stores. Bannana Republic is higher quality but way over priced. All three stores carry clothing that is quite similar in appearance but differ in terms of quality. Havent been to GAP stores in 15 years since i worked there, but from looking online they are still selling the same stuff they sold in the 90's. They need to adapt and reinvent themselves to compete with Walmart, Target, and Kohls