Coat giants are fighting an uphill battle when e-commerce is taking over. Now forced to loss weight clothing chain close 175 stores – and hope to finally become profitable again.
Now announces clothing giant Gap, which also owns brands Old Navy and Banana Republic, that it should close 175 of its stores in North America in the coming years. The goal is to return to profitability and around 140 stores will therefore be closed before this year is over. Some European stores will also be closed, writes the Financial Times.
The workforce is also strangled. 250 people will be forced to go. All these cutbacks will result in saving $ 25 million per year from 2016 onwards. Meanwhile, estimated to be losing 300 million dollars in sales when all the shops closed.
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Gaps big problem is that the clothes are selling poorly, despite the fact that time and again tried to focus on design . Now it seems to give up on that front when you take away the creative director role and instead put gunpowder on getting the clothes to move more quickly from the drawing board to the store.
During the year, the Gap shares fell 7 percent, but after news of the drastic savings climbed 1.7 per cent.
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