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This iconic clothing company is about to close 100 stores
Gap Inc., the parent company of Gap, Banana Republic, Old Navy, Athleta and several others, has had a tumultuous journey recently. Two of the company’s brands – Old Navy and Athleta – thrived in the chaos of the pandemic, while two others – Gap and Banana Republic – reached disastrous levels. In response, the company promised in a sales call this week to close 100 Gap and Banana Republic stores worldwide to focus on its most profitable clothing lines and online sales. Read on to find out more about these iconic closings and news about a store that cleaned up dust during the pandemic, This Beloved Network Is Closing All Its Stores. Despite its plans to close these physical stores, Gap, Inc. has reason to be optimistic, reports CNBC: Gap’s shares have risen 75% in the last 12 months and the market capitalization is $ 9.46 billion. However, the company acknowledged that some of its brands are making up for the declines in sales of others. “Sales at the same store as Gap’s sportswear brand Athleta grew 26% year on year and rose 7% at Old Navy,” reports CNBC. However, Gap stores saw same-store sales drop 6%, while Banana Republic stores plummeted 22%. It’s not just the drop in store sales that has made Gap Inc.’s eponymous brand eager to make changes: online sales of the brand skyrocketed 49 percent during the quarter ended January 30, and offload the onerous operation of physical stores in favor of e-commerce can help compensate for the company’s overall sales drop. There are already signs of recovery. Gap, Inc. “made a profit, thanks to its efforts to sell more merchandise at full price and progress in closing underperforming stores,” reports CNBC, and is already planning an expansion. The company will open between 30 and 40 Old Navy stores, as well as 20 to 30 Athleta stores globally over the course of 2021. Are you wondering how the other stores are doing in the midst of COVID? Continue reading for more companies that collapsed during the pandemic and for more information on surprising store closings, this popular beauty brand is closing for good. 1 The Disney Store After a difficult year of sales, The Walt Disney Co. announced on March 3 that it plans to close at least 20 percent of its Disney Store stores in an effort to focus on online sales and e-commerce, reports the CNBC. While their plans do not affect any of the 600 shopping experiences the company offers at Disney Parks or partnerships with other major retailers, including Target, they hope to close 60 North American stores in the coming months. “Although consumer behavior has shifted towards online shopping, the Global Pandemic has changed what consumers expect from a retailer,” said Stephanie Young, president of consumer products, games and publications, in a statement, via People. And for the latest store closing news delivered straight to your inbox, sign up for our daily newsletter. 2 Victoria’s Secret The iconic Victoria’s Secret lingerie chain was struggling before the pandemic, but the past twelve months of temporary closings have affected sales. That’s why L Brands, its parent company, announced on February 24 that it planned to close up to 50 stores before the end of the year, reports USA Today. While the leadership originally had plans to sell Victoria’s Secret from its portfolio to New York Sycamore Partners, a privately held company based in the city, the business was dissolved when the pandemic hit. And for another large retailer that recently closed, this popular accessory chain has just gone bankrupt. 3 Fry’s Electronics Surviving for more than three decades on the market, Fry’s Electronics was one of the last major gaming electronics stores – until recently. Now, the popular chain will close all 31 stores in nine states amid losses from the pandemic. The company announced its plans in a statement on February 24 on its website: “Fry’s Electronics, Inc. made the difficult decision to close its operations and close its business permanently as a result of changes in the retail sector and challenges posed by the pandemic. COVID-19 “, announced the leadership. “We expect that settling through this orderly process will reduce costs, avoid additional liabilities, minimize the impact on our customers, suppliers, owners and associates and maximize the value of the Company’s assets to its creditors and other interested parties. ”4 Sears and Kmart Even Sears and Kmart, two of the biggest names in American retail, were no match for the economic price of the pandemic. Both stores, owned by parent company Transformco, will undergo another round of closings in the coming months, resulting in the closure of at least 13 branches in mid-April. “We were getting ready to bring you another fun season at Kmart, but unfortunately that was not in the plans for us this time,” wrote a Kmart in Silver Springs, Maryland, on his Facebook page. And for the closing of more iconic stores, this popular clothing store is closing in at least 200 locations.