Gap is planning to close one quarter of all their North American stores over the course of the next several years. These closings are the result of a long lasting slump in sales. They are hoping that things will turn around. Some Gap stores located in Europe will also be closing. However, there has been no word as of yet, on the exact number of stores that will close in Europe.
Sam Tabar considers the legal and financial implications since these closing will result in many losing their jobs. There will be 250 corporate jobs lost, and an undisclosed number of other employee positions also. The company expects to cut 25 million in costs due to these cuts. While Gap has suffered, Old Navy has flourished and been a positive for the company.
In addition to closing many under performing stores, Gap also plans to add different styles of clothing to their line in the hope of attracting additional customers. The company says they are hopeful that these measures will turn things around.