Gap will close its stores in the UK and Ireland.
(CNN Business)
- Gap will close its 81 stores in the United Kingdom and Ireland at the end of September and will open them entirely on the Internet, as the brand adapts to changes in shopping habits in the aftermath of the pandemic.
The US apparel retailer, which owns Old Navy and Banana Republic, said in a statement Thursday that the closures will affect stores operated by the company.
He added that there are also plans to sell his establishments in France and Italy.
The withdrawal comes after a strategic review of its business in Europe that began last year "with the aim of finding new and more profitable ways" to serve customers in the region, the company said.
Coronavirus pandemic: the tourism sector fears massive closure of companies
Gap announced in October a three-year plan to close hundreds of stores in North America, accounting for nearly a third of its presence in the retail market.
Like its rivals, the company has had to adapt to the shift to e-commerce, accelerated by the coronavirus pandemic, which has put brick-and-mortar retailers in check and contributed to the bankruptcy of established brands like Brooks Brothers.
This Thursday, Gap attributed to the "dynamics of the market" its decision to close stores in the United Kingdom and Ireland, which, it said, will be carried out "gradually" until the end of September.
He declined to comment on how many jobs will be affected.
"We are undergoing a consultation process with our European team, and we will offer support and assistance in the transition to our colleagues in the process of closing the stores," added the company.
Álvarez, economist: "The concern of businessmen is where Argentina is going"
The company has said it is in talks with a "potential partner" in Italy and negotiating with Hermione People and Brands, the retail arm of property developer FIB Group, to take over Gap's stores in France.
advertising
Gap opened its doors in London in 1987, marking its first expansion outside the United States.
It has been present in Ireland since 2006.
"Gap was decades ahead in offering the athleisure styles that have become so popular during the pandemic," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
But the brand has struggled to compete with a growing number of rivals in the 'casual space', especially given the 'decreased influx' in shopping malls and on the shopping streets where many of its stores are located. it added in a research note Thursday.
The physical exit of the brand will mean a new blow to British shopping streets, already impacted after the closure of Debenhams, the largest department store chain in the country.
GAP