Fashion brand Gap is considering shutting down its stores in some European countries, with a focus on saving cash in these tough times amid COVID-19.
The company has posted a statement on their website from president and CEO Mark Breadboard telling employees Gap is undergoing an appraisal of options for its European business and its possible stores’ int eh U.K., France, Ireland, and Italy could close in the second quarter. Gap is also redesigning its European warehouse and distribution models.
Franchise partnerships have a big talk at Gap Inc and it will help the company maintain its European presence while being cost-effective. In June, Gap Inc. said they anticipated to close 225 Gap and Banana Republic stores within the next year. Europe only reported 2 percent of Gap Inc.’s sales in the first half of 2020.
The company has greatly impacted by the coronavirus pandemic but did see strong performance in e-commerce which has led to them focusing more on their e-commerce endeavors.
Gap inked a 10-year deal with Kanye West for Yeezy Gap and hopefully, this will bring in younger consumers and attract fans of Kanye West’s Yeezy line who want the look at a more accessible price point.
Earlier this year, Gap said it planned to close over 225 unprofitable Gap and Banana Republic stores globally as a part of a restructuring plan.