American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.
200 closures, 300 openings
Gap’s choice has everything to do with each individual brand’s performance. The latest results show that Old Navy and Athleta are much better than the traditional two brands. The decision will have an enormous impact on the group’s store network: 200 Gap and Banana Republic stores will shut down and 300 Old Navy and Athleta stores will surface. The company expects Old Navy’s turnover to surpass 10 million dollars in the next few years. Athleta should reach 1 billion dollars in the same time frame.
“Over the past two years, we have made considerable progress to develop how we work”, Gap Inc CEO and president, Art Peck, said according to Fashion United. “With a large portion of the foundation already in place, we are now focused on growth. Our iconic brands will be used to achieve growth thanks to the analysis of our customers’ shopping behavior.”
Gap Inc already downsized its store network by 650 stores since 2005. It also targets more online growth, which has the largest turnover and profit growth of every channel within the company.