Gap Inc. (San Francisco), which operates under the Gap, Old Navy and Banana Republic nameplates, announced it will reduce its network of Gap stores in North America to 700 by the end of 2013, down 189 from the 889 stores open at the end of June, reports The Wall Street Journal.
The company was already working to reduce its North American footprint but hadn't previously disclosed details about the cuts. No specific locations were identified but the retailer said efforts will be aimed at clearing out stores that have become tired or worn out while letting leases expire on other locations.
While paring down its North American footprint, the specialty apparel retailer plans to continue its expansion overseas to countries including China and Italy. The company's international sales grew 16 percent in the first half of the year, while same-store sales at international locations dropped 5 percent. “This is not a condemnation of our home country, but we are making a prediction that it's slow growth here,” Gap ceo Glenn Murphy told investors last week, adding that he sees China as the company's biggest opportunity.
Gap’s first-half profit for 2011 fell 21 percent to $422 million, reports The Journal.