If Gap and Banana Republic are staples in your wardrobe, you'd better stock up now. Gap Inc. announced it will close nearly 200 Gap and Banana Republic stores, citing underperforming sales for both brands.
The company plans to shift its focus to its brands that are succeeding, namely Old Navy and Athleta, its active wear brand, opening 270 new locations for those retailers in the next three years, according to a statement.
Gap Inc. predicts Old Navy will reach $10 billion in sales in the next few years, while Athleta is estimated to hit $1 billion. By contrast, Gap's comparable growth has not increased for 14 quarters, and Banana Republic has seen 10 consecutive quarters of decline, including a few double-digit drops.
Gap has struggled to maintain quality and stay on trend while keeping pace with fast-fashion competitors like H&M and Zara, according to Fortune. The recent decision highlights how difficult it is to save even solid brands with loyal followings.
"We're now shifting our focus to growth," said Gap Inc. CEO Art Peck. "We will leverage our iconic brands and significant scale to deliver growth by shifting to where our customers are shopping."
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