in

Big name retailer plans dozens of store closures in 2023 – but customers will get a new place to shop

AN iconic American clothing brand has plans to shake things up in the wake of a disappointing earnings report.

Gap – which also owns Old Navy, Banana Republic and Athleta – will close about 50 stores in the coming months.

The iconic clothing company Gap plans to close several stores as it struggles financially

1

The iconic clothing company Gap plans to close several stores as it struggles financiallyCredit: Getty

As the company works to shutter the Gap and Banana Republic locations, it’s also planning to open about 30 new stores under its Old Navy and Athleta banners, CNBC reported.

The company reported net losses of $273million for its most recent quarter, which ended on January 28.

PANDEMIC STRUGGLES

Gap’s revenue during this period was $4.36billion, less than the anticipated $4.24billion.

This is part of the reason the company’s stock price is now just $10, down about 70percent from its post-pandemic peak of $35 set in May 2021.

Major retailer’s CFO announces closures of two iconic clothing stores
I dressed my mom in my clothes - people say she looks like my sister

But this drop wasn’t the beginning of Gap’s financial woes.

Like many companies, Gap struggled to get inventory shipped from manufacturers amid the pandemic.

The huge backlog meant that when much of this clothing did arrive, it was already out of season. Since then, Gap has had too much product on hand.

But a bright spot in the new report is that the company’s inventory is down 21 percent year over year.

LEADERSHIP

Gap’s difficult situation is compounded by the fact that it doesn’t have a permanent leader.

Interim chief executive officer Bob Martin has been at the helm since July, but he’s announced that the company is finalizing plans to hire an external candidate to fill the position permanently.

“As a result of the work we have underway to build a stronger foundation and restore the company’s creative muscle, we are optimistic that this will provide our new leader with a quicker ramp in driving consistent, profitable growth over the long term.” he said.

Gap is making some other big shifts in the executive suite.

Mary Beth Laughton, the chief executive officer of Athleta, left the company on March 9, alongside Asheesh Saksena, the chief growth officer. The latter position has been eliminated.

Sheila Peters, Gap’s chief people officer, will also leave at the end of the year.

WAYS TO SAVE

The store closures could lead to liquidation sales, which would be a good opportunity for shoppers in search of some great bargains.

Coupon apps, like Coupons.comIbotta, and Lozo can also help shoppers find the best deals in their area.

The Bachelor's Zach Shallcross visits final four hometowns tonight
Watch ‘Karen’ launch foul tirade after hitting vehicle in church parking lot

There are also great bargains on clothing at retailers like Walmart, where this $22 branded Black Panther hoodie is available for just $1.

Shoppers should also check out Dollar Tree, where they can get four satin pillowcases for just $5, or $1.25 a piece.

Written by Emilie Grenaud

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

    I only wear a bra ‘two business days a week’ – my hack makes it easy but people joke I’m using ‘pimple patches’

    La façon étrange dont les corps de l’animatrice de podcast et de son mari ont été retrouvés à la maison après que le couple a été “assassiné par son harceleur fou”