Gap to Close 175 North American Stores and lay off 250 corporate jobs

On Monday, clothing retailer Gap Inc. announced about its plans of closing 175 North American stores and cut 250 corporate jobs.

Things unveiled by the company with regard to the plan include-

• Around 18% of its stores will be closed in North America. This fiscal year, around 140 will close. The announcement is for namesake stores. The company is still decided which stores should be closed, including some in Europe.

It shall be noted that outlets and factory sales will not be affected. The company will continue to operate 500 Gap stores and 300 outlets. Bulk of the stores to be closed is majorly in Europe.

• The company has not unveiled the number of employees, it will lay-off. It has around 141,000 full- and part-time employees worldwide and in around 1,600 company-owned and franchise stores. As per the announcement, 250 headquarters jobs will be cut. But it has said that the company will try to place the workers at different locations.

• Store closings and job cuts will make the company save around $25 million a year.

• Sales were reducing and made the company to reach at this decision. As per Forbes reports, Gap's same-store sales fell 15% in April and 6% in May.

Jeff Kirwan, global president for Gap Inc., said, “We're focused on offering consistent, on-brand product collections and enhancing the customer experience across all of our channels, including a smaller, more vibrant fleet of stores”.