The Gap is shuttering its Fifth Avenue store in New York, as confirmed by the company.
At the beginning of November, Gap had more than 1,000 stores around the world and nearly 800 stores in North America. But weakening sales and squeezed margins in recent years rendered many of those stores unprofitable and led to the company’s plan to start shutting them down. The closing of the Fifth Avenue store, scheduled for January 20, is only a part of the planned closures of hundreds of Gap stores.
According to Gap CEO Art Peck, closing stores could save Gap up to $100 million in profit.
In its latest quarter, Gap's sales declined -7% compared to a year ago. Other brands owned by Gap are Old Navy, Banana Republic, and Athleta, which reportedly are in a better position compared to the company’s namesake brand.