Banana Republic only accounted for 15 percent of the company’s net sales in the 2019 fiscal year, Mark Breitbard, the president of Gap Global, said during a virtual meeting with investors on Oct. 22. For comparison, Gap stores accounted for 28 percent and Old Navy stores accounted for 49 percent. And for another major change that could affect you, check out This Popular Gym Is Closing All of Its Locations.ae0fcc31ae342fd3a1346ebb1f342fcb Breitbard announced that Gap Inc. would be closing one-third of its namesake Gap stores (22o stores) in North America by the end of 2023. The company plans to close mostly mall-based stores, leaving only 20 percent of its remaining Gap stores in shopping malls. “We’re shrinking North American specialty stores and getting out of mall-based locations,” Breitbard said on the call. “What we’re doing is restructuring the fleet, shifting and pushing more of the business to digital and growing (market) share in key categories.” And for more up-to-date information on which stores are going for broke, sign up for our daily newsletter. As the company’s biggest brand, Old Navy is actually getting a boost as a result of the company’s restructuring. There are currently already about 1,200 Old Navy stores worldwide, and Gap Inc. plans to open 30 to 40 more in the next three years. In fact, the company projects that the brand will increase revenue from $8 billion to $10 billion by the end of 2023. For more stores you may no longer see in malls, find out which Mall Favorite Just Filed for Bankruptcy in September. Breitbard said the company has been “overly reliant on low productivity, high rent stores” and the last six months of the pandemic has helped address Gap Inc.’s “real estate issues and accelerate [its] shift.” In fact, the company is currently involved in a legal dispute with Simon Property Group, a major mall operator, over rent charges during the nationwide shutdowns. In April, the retail company—which reportedly pays $115 million in monthly rent for its North American stores—announced that it would be not be making rent payments while stores were locked in mandatory closures. According to the lawsuit by the Simon Property Group, it appears the retailer has continued to withhold rent payments. For more retail controversy, find out why Walmart Is Starting to End Its Most Popular Program.
