Gap Closes 175 Stores

Gap is set to close 175 stores in the US, along with a "limited number" of its European stores. The move will leave Gap with just 800 stores in North America, cutting its doors by almost a fifth, although it will retain a presence in more than 50 countries worldwide.

It's been a difficult time for Gap over recent years. Former creative director Patrick Robinson left the company in May 2011, before his successor, Rebekka Bay, departed in January, her post having been eliminated. Although annualised savings from the closures are thought to be in the region of $25 million, one-time closing costs will be between $140 million to $160 million.

"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," Art Peck, Gap's CEO, told WWD of Jeff Kirwan, global president for the Gap brand. "Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be."

"These decisions are very difficult, knowing they will affect a number of our valued employees, but we are confident they are necessary to help create a winning future for our employees, our customers and our shareholders," Kirwan added.