Hundreds of Gap (NYSE:GPS) stores will be closing their doors over the next few years as the company cleans house.
The struggling retailer says that it’s ditching Noth American malls in favor of outlet locations. According to the closing news, 220 Gap stores will be shutting their doors by the time early 2024 rolls around.
It isn’t just Gap stores that are closing. The company also notes that it will be reducing its number of Banana Republic stores at the same time. That will see 130 of these locations closing shop permanently.
The Gap news does come with some caveats. While Gap and Banana Republic stores are closing, the company is planning to increase the number of Old Navy and Athleta stores that it has. This is due to the strong performance of both brands.
Gap says that’s its goal is to open an additional 30 to 40 new Old Navy stores over the next three years. It also wants to increase its total number of Athleta stores to 300. The company currently has about 1,200 Old Navy locations and 200 Athleta stores, reports Associated Press.
Mark Breitbard, president of Gap, said the following in a webcast cited by Fortune.
“We’re shrinking North American specialty stores and getting out of mall-based locations. What we’re doing is restructuring the fleet, shifting and pushing more of the business to digital and growing (market) share in key categories.”
GPS stock started off up on Friday morning before dipping lower. As of noon, the stock is up slightly from yesterday’s close.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.