Quarter of stores will be closed
In total, one quarter of GAP stores that the company operates in North America should be closed. Currently there are 675 stores and GAP have plans to close 175 of them. Even 140 of them will be closed until January 2016, when in the GAP the current fiscal year ends. Closing stores will not affect just North America; GAP announced that some of their stores will be probably dissolved in Europe. Which ones? Nobody knows for now...
Closing the stores does not mean only a smaller number of places where we can buy clothes from GAP. It is also means the dismissal of a large part of employees – it would affect thousands of them. In addition, GAP plan during this year also dismiss another 250 employees from the company headquarters in San Francisco and from other store locations across the United States.
What is the reason? Money and only money again
GAP already longer contend with increasingly smaller revenues. Upcoming cuts and closing of stores should to the company bring at least 25 million dollars at the beginning of next year. Hopefully this will be for GAP enough to get up, run their stores and not to dismiss more of their employees.