The Gap Is Closing Over 20% Of Its Stores In North America

by Justin Fenner | 2:50 pm, October 14th, 2011

Beleaguered retailer The Gap announced today that it would shut down nearly 200 of its stores in North America, a figure that represents just over one fifth of the retail doors it has open on the continent.

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The Wall Street Journal reports that The Gap, which expanded its network rapidly over the past few decades, decided to close all those stores because of challenges even retailers that aren’t struggling are having a hard time with. There are Gap stores all over the country, but as people stop going to the mall and start shopping online — or even stop shopping altogether — keeping its huge network of stores alive doesn’t make finanicial sense anymore. The company says the closures will be a gradual process over the next two years, instead of a full stop right now:

Gap will let existing leases expire, rather than terminate them early, a spokeswoman said. She wouldn’t say where the closures would take place, but the company said they will be aimed at clearing out stores that have become tired or worn out. The pullback will empty two million square feet of retail space, creating a fresh headache for U.S. mall landlords, who are already struggling with record vacancies.

But The Gap isn’t giving up hope. It plans on opening up 50 or so outlet stores across the country, and plans on expanding its network of stores in the one place where the retail business is actually growing: China.

“This is not a condemnation of our home country, but we are making a prediction that it’s slow growth here,” Gap Chief Executive Glenn Murphy told investors Thursday.

Slow — and slowing to a stop. Read more about The Gap’s closures here.

[WSJ]

e-commerce malls North America online shopping Store Closings The Economy The Gap