iStock Editorial/Thinkstock(SAN FRANCISCO) — Gap Inc., the popular retailer of t-shirts and khakis, is closing down more than a fourth of its stores over the next few years.
Gap sales have declined recently, prompting the retailer to close a total of 175 of its 675 locations in North America and cut 250 corporate jobs. The company estimates the cuts will save it $25 million a year and boost its chance to “restore the brand” and be competitive once again.
“Returning Gap brand to growth has been the top priority since my appointment four months ago — and Jeff and his team bring a sense of urgency to this work,” said Art Peck, Gap Inc. chief executive officer, referring to Gap Inc.’s Global President, Jeff Kirwan. “Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers.”
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