Retail has been decimated in the past several years and the pandemic is just finishing off what's left. Gap was once a giant and now it's just a shadow of its former self. I think the stores they announced would be closing in the next few years are just the start - and will close faster than we think. Call me a pessimist but I like to call it as it is.
3 replies (most recent on top)
The reality of the situation is that GAP and BR store closings are going to step up. From a financial perspective, there's already litigation on overdue rent and every mall contract is under review. Expect some closure actions to begin and staff reductions. BR has a new CEO with the task of downsizing (rightsizing) and then fixing what is left. Right now, GAP and BR aren't really helping the GPS bottom line the way Athleta and Old Navy are. It's about market share, share price and profit. Plus, as you might imagine, the explosion and acceptance of online buying offers an attractive alternative to costly brick & mortar. If 21Q1 doesn't beat earnings, you could look for the time table to quicken.
Q3 results looked bad for Gap and BR as expected.
I think Gap will be the first to eliminate most and possible all stores and go digital. Banana Republic not far behind. The company's only saving grace right now is Old Navy.