While retail at large seems to be enjoying a holly jolly holiday season, Gap looks like they’re gonna have a blue Christmas.
The retailer’s financial difficulties have put it in a position to start closing stores. Their CEO says more than 100 Gap locations will close, and the company is now in the process of picking which ones will close in early 2019.
1. Gap stores are losing money and its sister brands are having to make up for it.
It’s not that Gap Inc. isn’t doing well — just its namesake Gap stores.
Gap stores that have been open at least a year are down 5% in sales this year — which is even worse than the 1% drop a year ago.
Sister stores Old Navy, Banana Republic and Athleta are actually doing quite well, and have been making up for Gap’s decline.
2. They haven’t announced which stores will be closing — but they’ll mostly be mall stores.
Gap says it will be shutting down the “bottom half” of its stores (performance-wise) — and that’ll mostly include mall-based stores.
3. Gap closed 200 stores in 2017.
But while those Gap stores were closing, 270 Old Navy and Athleta stores opened.
4. Gap’s CEO plans to act quickly and aggressively when it comes to closing down stores.
Sounds like once they announce their plans for the next fiscal year, they won’t waste much time in closing down the stores, which can only mean. . .
5. Keep an eye out for closing sales — up to 90% off.
While we’re sad to see so many Gap stores closing, the changes will bring closeout sales.
When stores closed a year ago, discounts hit up to 90% off — but that was in the stores’ final days. Discounts usually start much more modest (think 10-20%), although with the CEO’s aggressive closure schedule looming, you may want to check in regularly once specific stores are selected for closure.