X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Next year will see Gap’s brands consolidating its various stores and closing units strategically in the US, even as the international business grows, said Chairman and CEO Glenn Murphy at the 28th Annual Piper Jaffray Consumer Conference in New York City.

Over the next two months, the company will complete an assessment of its 40 million sf of US real estate and create a strategic plan around what Murphy dubbed the “Four R’s”: repositioning, relocating, remodeling and right-sizing. Many stores, he said, are too large, and separating some of Gap’s various brands, including Body and Kids into separate units is no longer strategically smart.

“Our fleet is older than we would like and not reflective of what the brands once were,” Murphy said. “And with 3,100 stores, we have not put in the time to create a strategy. Great retailers strategically define where they want to get to.”

The result means reducing the size and number of stores in the United States, and combining Gap adult, Baby, Body and Kids into one large superstore in some locations.

The age of some stores, however, has one advantage for landlords, he said. Many are in prime locations in A malls, which still have value.

“One of the advantages of being a 40-year-old company is that we were going into malls early, taking the 40 or 50-yard-line space,” Murphy said.

Meanwhile, the Gap will expand to Russia, its 18th country, and Banana Republic will expand to other U.K. cities beyond its London flagship. The outlet business will expand to Canada. As of May 3, Gap operates 3,177 stores worldwide.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.