Gap ends the era of flagship stores. The American group, the fourth-largest fashion retailer, has begun to explore the closure of the Gap and Old Navy stores in Times Square, New York.
Specifically, the company is exploring leaving the premises or subletting them from other companies. Gap “reassessed its operating strategy for flagships, given their declining importance as marketing and brand awareness tools,” the company said in a statement.
The company expects to close about 90 company-operated stores, net of openings and repositions in fiscal year 2020. This guidance includes about 170 Gap brand store closures globally, the majority of which are expected to close in the fourth quarter of fiscal 2020. The company continues to expect store openings to be focused on Old Navy and Athleta.
The company, which has just published its annual results, has ended the period with its sales and profit down. The group has shrunk its turnover by 1.1%, to 16.4 billion dollars, while its result has sunk 65%, to 351 million dollars.