The Gap to Pull Up Stakes and Move Out of America’s Malls
One of the most iconic mainstays of America's malls has to be clothing retailer The Gap. (Okay, the bath salts kiosks and pretzel stands are are a common sight, too) But after a pandemic that took a toll on retail outlets, The Gap announced on Thursday that they'll move out of malls and relocate in off-site locations.
According to ABC News, they also plan to shutter 220 - about 30% - of its stores. In an investor meeting, they also said they plan to open an additional 30 - 40 Old Navy stores to their fleet.
Gap's franchise also holds the popular Banana Republic which will begin to shift away from men's suits and focus on more knits and home casual wear. Not surprising given the work-from-home practice as of this year. No real need for a suit while sitting in a zoom meeting. The plan to close 130 of the North American Banana Republic stores was also on the agenda for the next 3 years.
All of these shifts in their business models are expected to nearly complete by 2023. Investors reacted positively with shares rising after the restructuring news.
It remains to be seen exactly which Gaps will exit the malls and which ones will close their doors for good.