Gap Slows Store Launches
Gap Inc. has realigned its real estate strategy and as a result will cut its store openings by 10 percent to 15 percent over the next three to five years, said Chief Executive Officer Glenn Murphy.
Murphy made the disclosure during a release of the San Francisco retailer’s second-quarter earnings. The company recently completed a study of its chain and determined that it had too much square footage in certain locations, Murphy said.
“We’ve never had a clear real estate strategy,” Murphy said. “We now have that information, and it will allow us to make quick decisions. The real estate comes down to the quality of the mall and the quality of the real estate.”
The company will be working with landlords on the dispositions. Gap is planning 100 new stores this year, most of which are designated for its Banana Republic division. The total is about 15 fewer than originally planned. Gap plans on closing about 115 stores, some of which are slated for repositioning.—Robert McAllister
