Gap May Close Hundreds of Stores

Gap Inc. (San Francisco) may be considering closing hundreds of its namesake stores. The news comes in the wake of a 7-percent drop in sales during its third quarter.

Chief Executive Officer Art Peck said, “We are clearly not satisfied with the performance of Gap brand.” To that end, he said the company is “committed to taking the bold and necessary steps” to improve the brand, which could include shuttering underperforming stores. The company did not detail which stores it considers “underperforming,” but did say that if those stores do not improve quickly, closures are likely.

However, other brands in the company’s portfolio did show growth in the latest quarter, and the company plans to open more than 70 new stores for its Old Navy brand alone in the remainder of fiscal 2018, according to Philadelphia Business Journal.