If Gap and Banana Republic are staples in your wardrobe, you’d higher refill now. Gap Inc. introduced it can shut almost 200 Gap and Banana Republic shops, citing underperforming gross sales for each manufacturers.
The firm plans to shift its focus to its manufacturers that are succeeding, specifically Old Navy and Athleta, its lively put on model, opening 270 new places for these retailers within the subsequent three years, in accordance to a statement.
Gap Inc. predicts Old Navy will attain $10 billion in gross sales within the subsequent few years, whereas Athleta is estimated to hit $1 billion. By distinction, Gap’s comparable progress has not elevated for 14 quarters, and Banana Republic has seen 10 consecutive quarters of decline, together with a number of double-digit drops.
Gap has struggled to keep high quality and keep on development whereas holding tempo with fast-fashion rivals like H&M and Zara, in accordance to Fortune. The current determination highlights how troublesome it’s to save even strong manufacturers with loyal followings.
“We’re now shifting our focus to growth,” stated Gap Inc. CEO Art Peck. “We will leverage our iconic brands and significant scale to deliver growth by shifting to where our customers are shopping.”
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