Famous store chain closing dozens of locations in 2023, but customers will have somewhere else to shop.
After receiving a disappointing earnings report, one of the most recognizable American clothing companies plans to make some significant changes.
About fifty of Gap’s stores (including Old Navy, Banana Republic, and Athleta) will be closing in the coming months.
CNBC reported that even as the company was working to close Gap and Banana Republic stores, it was planning to open about 30 new stores under the Old Navy and Athleta labels.
Losses for the most recent quarter, which ended on January 28th, totaled $273 million.
Comparatively, the expected revenue for the period was $4.24 billion, so Gap’s actual revenue was $4.36 billion.
This is a contributing factor to the company’s stock price dropping from its post-pandemic high of $35 in May 2021 to its current low of $10 in early 2022.
Unfortunately for Gap, this decline was just the beginning of their financial difficulties.
During the pandemic, Gap experienced shipping delays from manufacturers, as did many other businesses.
Due to the enormous delay, many of these garments arrived too late in the season to be worn. After that, Gap began to have an abundance of stock on hand.
The company’s inventory has decreased by 21 percent from the previous year, which is good news, according to the latest report.
The lack of a consistent head of state at Gap only serves to exacerbate the company’s current predicament.
Though Bob Martin has been serving as interim CEO since July, he has stated that the company is nearing completion of plans to hire an external candidate to fill the position permanently.
We are confident that our new leader will be able to hit the ground running in driving consistent, profitable growth over the long term as a result of the work currently underway to build a stronger foundation and restore the company’s creative muscle, he said.
The executive ranks at Gap are undergoing further significant changes.
On March 9, Athleta lost both their CEO Mary Beth Laughton and CMO Asheesh Saksena. The latter job is no longer available.
Chief people officer Sheila Peters will also be leaving Gap at the end of the year.
WAYS TO SAVE
Shoppers looking for a good deal may want to take advantage of any liquidation sales that may result from the store closings.
Find the best local deals with the help of coupon apps like Coupons.com, Ibotta, and Lozo.
At stores like Walmart, you can get a branded Black Panther hoodie originally priced at $22 for only $1.
Four satin pillowcases can be purchased for $5 at Dollar Tree, making each case only $1.25.