Gap announced it will be closing 175 stores in North America within the next few years, with 140 of them closing at the end of January 2016.
Gap Inc., which operates Banana Republic, Gap and Old Navy brands, posted sale declines for five consecutive years, reported Bloomberg Business. The move is an attempt to strengthen the San Francisco-based company’s business model as such cuts will save approximately $26-million annually.
The release did not state which specific stores were being targeted for closure, but it said 800 Gap retail stores will remain in North America. Gap factory and outlet locations will not be targeted for closure.
Gap Inc. has not disclosed how many retail employees will be affected, whether anyone will be laid off or relocated, but 250 job cuts will strike its company headquarters.
“These decisions are very difficult, knowing they will affect a number of our valued employees, but we are confident they are necessary to help create a winning future for our employees, our customers and our shareholders,” said Jeff Kirwan, global president for Gap in a statement.
Vancity Buzz has reached out to Gap for further comment. At this time, it is not known whether any stores in the Metro Vancouver region will be affected by the downsizing plans.