Gap To Close and Consolidate Stores
New York Speaking at the 28th annual Piper Jaffray Consumer Conference on Tuesday, Gap, Inc. CEO Glenn Murphy announced the retailer will alter its real estate portfolio to create smaller-size stores in order to bolster the company’s bottom line.
In addition to closing select stores, Gap will consider relocating or downsizing locations. Additionally, some of the company’s smaller formats, Gap Kids and Gap Baby, will likely be absorbed into the footprint of adult Gap stores.
Murphy said Gap has too many stores that are 12,500 sq. ft., which he deemed too large other than for flagship and signature locations, according to the Associated Press. He added that the target size of stores should be 6,000 sq. ft. to 10,000 sq. ft.
The company also plans to reduce the number of 20,000-sq.-ft. Old Navy stores it has and focus on stores that are around 14,000 sq. ft. to 15,000 sq. ft. The changes are expected to begin next year.