Gap announces its plans to close 175 stores and cut 250 corporate jobs across North America. The company claims to be reevaluating their business by focusing on efficiency and productivity in decision-making. The combination of the lack of a creative design force, increased competition, and reduced traffic has forced Gap to downsize. However, the reduced size and increased efficiency will allow superior customer services and a “more vibrant fleet of stores”.
This news is consistent with the recent trend of brands reducing their quantity of brick and mortar locations. An increasing number of shoppers are opting towards the convenient and cheaper online alternatives, and forgoing the hassle of in-person shopping.