Gap merges concepts to cut costs
- Published: 14 June 2008 11:41
- Author: Marino Donati
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- Last Updated: 21 June 2008 11:42
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US casualwear giant Gap will ditch its standalone concepts for kidswear and lingerie ranges and merge them with adult stores to cut costs.
The group, which operates Gap, Gap Kids and Gap Body stores, as well as its Old Navy, Banana Republic and online Piperlime businesses, said it needed to optimise its property portfolio.
Gap chief executive Glenn Murphy said there was no need to expand the group's 40 million sq ft of space. He said: "We need to work out how to maximise this asset. We will close stores going forward, but they will be relocated, repositioned and remodelled.
"We have smaller Gap Kids-only or Gap Body-only stores in the same malls as adult stores. We know from talking to our customers that they can be shopped together in a 10,000sq ft shop."
Murphy said that the group's other priorities were international openings and more Banana Republic store in major European cities.
