The Gap, Inc. reported that as of October 30, 2021, net of openings, 217 Gap and Banana Republic stores in North America have closed since the beginning of fiscal 2020.
The company is still focused on its plans to reduce the number of Gap and Banana Republic stores in North America by approximately 350 stores from the beginning of fiscal 2020 through the end of fiscal 2023.
Most of the selected stores under consideration have leases that expired in fiscal 2020 or will expire in fiscal 2021, allowing the company to exit underperforming stores with minimal net impact on its Consolidated Statement of Operations.
As part of a strategic review of the company’s brands and businesses, The Gap made the decision to ditch the Janie and Jack and Intermix brands.
While Janie and Jack’s divestment was completed on April 8, 2021, the Intermix divestment was completed on May 21, 2021.
During fiscal 2020, The Gap presented its Power Plan 2023 strategy, which reflects long-term plans to strengthen the company and lay the foundation for sustainable growth.
Since then, the company has focused on its key initiatives, including the growth of Old Navy and Athleta, the repositioning and transformation of Gap and Banana Republic, and expanding strategic partnerships to expand its brands across product categories, markets, and channels.
Since the beginning of fiscal 2021, the company has executed this strategy in a number of ways, including launching GapHome at Walmart.com and BODEQUALITY at Old Navy.
Additionally, during the third quarter of fiscal 2021, it launched the Athleta website in Canada and opened the first Athleta store in the Canadian market.
During the third quarter of fiscal 2021, global supply chain disruption, including Covid-19-related factory closures and ongoing port congestion, led to significant product delays, resulting in brands not could fully meet customer demand.
The Gap is working with its suppliers to minimize disruptions and is employing greater diversification of ports and air cargo to keep up with customer demand.
In addition, during the third quarter of fiscal 2021, the company acquired two technology companies, CB4 and Drapr, which will add data and science to the way it works and improve the customer shopping experience while streamlining operations. according to The Gap forecasts.