Gap may close stores across Europe
Oct 21, 2020
Gap has told its European store network it is likely that stores across the continent could close. The company is looking at trying to form external partnerships to still maintain a presence across Europe in addition to boosting e-commerce efforts. The news was reported by WWD.
Gap posted a statement on their website from president and CEO Mark Breitbard telling employees Gap is undergoing a review of options for its European business and its possible stores int eh U.K., France, Ireland, and Italy could close in the second quarter. Gap is also reviewing its European warehouse and distribution models. The European distribution center in Rugby is also potentially on the chopping block.
Franchise partnerships are big talk at Gap Inc. right now as it will help the company maintain its European presence while being cost-effective. In June, Gap Inc. said they expected to close 225 Gap and Banana Republic stores within the next year. Europe only accounted for 2 percent of Gap Inc.’s sales in the first half of 2020.
Like most retailers, Gap Inc. was greatly impacted by the coronavirus pandemic having to shut down their stores for months. This, of course, dealt a blow to Gap Inc.’s revenue, with a 62-million-dollar loss for the second quarter. The company did see strong performance in e-commerce though, which has led to them focusing more on their e-commerce endeavors.
In July, Gap inked a 10-year deal with Kanye West for Yeezy Gap. The company is hoping this will bring in younger consumers and attract fans of Kanye West’s Yeezy line who want the look at a more accessible price point.
Image: Gap, Facebook