Source: Connect Commercial Real Estate
Gap Inc. plans to phase out its shopping mall presence, closing 350 Gap and Banana Republic mall locations by 2024. The closures, representing 30% of the combined store count for the two brands, are expected to be 75% completed by the end of fiscal 2021.
In an investor presentation last week, executives at San Francisco-based Gap emphasized a shift to digital channels. The company noted that it’s ranked number two in U.S. apparel e-commerce sales, and plans call for further channel penetration in the next few years.
By the end of fiscal 2023, Gap also expects to derive 70% of its revenues from its Old Navy and Athleta Brands, up from 55% in fiscal 2018.
Phasing out mall locations doesn’t mean walking away from brick-and-mortar retail, though. As part of a long-term omnichannel strategy, Gap plans to leverage its network of 3,000 physical stores for local delivery and pickup.