Gap and Old Navy to open new flagship locations in Times Square

New York - While Gap Inc. recently announced that they would be closing 175 stores and laying off 250 employees, that didn't mean a full on scale back of all business. The company has recently announced their plans to open two new flagship stores in one of the most famous places in all of New York City: Times Square. While many might be scratching their heads wondering why Gap Inc. would be opening two new flagship stores when their business has been struggling, it actually does make sense.

The company is becoming more selective about where they open stores after having to shutter 175 stores across the nation, and Times Square is one of the most ideal places to have a retail presence. All the stores in the incredibly high tourist traffic area see excellent business. Also, Old Navy is performing the best of all Gap Inc. brands.

Two Gap Inc. brands will be arriving in Times Square

Of course, it's hard to imagine where Gap and Old Navy could go in the very crowded Times Square sector, but, they have found somewhere. Toys 'R Us has decided not to renew their lease, leaving a ton of highly valuable retail space available. Gap Inc. made sure to jump on that opportunity, especially since they need prime retail space to help improve their sluggish business.

Toys 'R Us's lease officially expires in 2016, and Gap Inc. will begin construction shortly after. While Gap Inc. is using Toys 'R Us's singular old retail space, it will still be two completely separate stores for Gap and Old Navy. The stores will be 31,000-square-feet each. Hopefully these new locations will be able to bring Gap Inc.'s sales numbers up so they can begin to return to their former glory.