The Gap to Close 175 Stores

[I-10east]

Gap to close 175 stores and lay off 250 HQ workers

Gap plans to close 175 namesake stores, about 26 percent of its North American locations, over the next several years in an effort to streamline its store fleet.

The retailer, which operates Gap, Old Navy and Athleta stores, will also cut about 250 jobs at its corporate headquarters this fiscal year.

Gap estimates an annualized sales loss of about $300 million associated with the store closures. It will also take a one-time cost of up to $160 million.

In a statement to CNBC, Gap CEO Arthur Peck said the job cuts were not driven by digital shopping shifts or current business.
"Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers," Peck said in a statement.

The company will operate about 800 stores in North America after the restructuring.

Separately, Gap reaffirmed its previous full-year earnings guidance of between $2.75 a share and $2.80 a share.
Last month, the company, which has seen seen more than a year of monthly same-store sales declines, said it was placing its bets on more compelling merchandise hitting stores this spring.

http://www.cnbc.com/id/102760488?

[Adam White]

Gap to close 175 stores and lay off 250 HQ workers

Gap plans to close 175 namesake stores, about 26 percent of its North American locations, over the next several years in an effort to streamline its store fleet.

The retailer, which operates Gap, Old Navy and Athleta stores, will also cut about 250 jobs at its corporate headquarters this fiscal year.

Gap estimates an annualized sales loss of about $300 million associated with the store closures. It will also take a one-time cost of up to $160 million.

In a statement to CNBC, Gap CEO Arthur Peck said the job cuts were not driven by digital shopping shifts or current business.
"Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers," Peck said in a statement.

The company will operate about 800 stores in North America after the restructuring.

Separately, Gap reaffirmed its previous full-year earnings guidance of between $2.75 a share and $2.80 a share.
Last month, the company, which has seen seen more than a year of monthly same-store sales declines, said it was placing its bets on more compelling merchandise hitting stores this spring.

http://www.cnbc.com/id/102760488?

That's a shame.

I wonder what he means:

In a statement to CNBC, Gap CEO Arthur Peck said the job cuts were not driven by digital shopping shifts or current business.
"Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers," Peck said in a statement.

That reads to me like he's saying people shop more online. Or that their sales are decreasing. If not, I am honestly curious to know how people have changed how they shop today that necessitates fewer GAP stores.

[thelakelander]

I wonder how many of these locations are in dying enclosed malls? Several department stores like Sears and JCPenney have shuttered locations in malls across the country in recent years. I wonder if the loss of anchor traffic has resulted in some location's sales falling apart?