Gap Inc. said it was investigating whether to close hundreds of underperforming stores at its brand name after the unit…
Gap Inc. said it was investigating whether to close hundreds of underperforming stores at its brand name after the unit reported a decline in quarterly comparable sales in the quarter.
The long-standing brand still has about 800 stores in North America and CEO Peck said Tuesday that he reviewed some flagship sites and “hundreds of other stores” based on profit, traffic trends or other factors. “19659002” I plan to end those who do not fit the vision of the future quickly, “Peck said at a conference call Tuesday, promising to update investors with more details at a later date.
Mr. Peck said closing of underperforming Gap stores would increase total profit at the company, which also owns the Old Navy and Banana Republic. Overall, San Francisco-based companies had around 3 700 locations around the world on November 3.
“We have had many stores in the bottom half of the fleet that have continued to deteriorating over time, and it is my strong belief that we have kicked the cane against this and offered a deteriorating customer experience and it has a negative impact on brand health, “said Peck.
Tuesday, the company reported flat comparable sales in the third quarter, as the gains at Old Navy and Banana Republic are compensated by the decline in the Gap brand. The company had a profit of $ 266 million on a total turnover of $ 4.09 billion. Gap lowered its performance target for the entire fiscal year.