Gap, the United State’s largest clothing chain, is planning to close one-fifth of its stores in the United States by 2013.
Gap detailed plans to close 189 locations, 21 % of its stores, in an attempt to increase short-term profits while gearing up for plans to expand overseas. This announcement is in line with the company’s goals of reducing the square footage in United States stores by 10% while doubling revenue from outside the United States to 30% by 2013.
“The combination of our global strategy and formidable growth platform puts us in a strong position to expand our reach into the top 10 apparel markets worldwide,” said Gap CEO Glenn Murphy in a public statement. “With a strong management team in place, we’re well positioned for sustained growth across the business.”
The corporation, which runs the Gap, Old Navy and Banana Republic, and Piperlime, is looking overseas for more revenue as American consumers continue to spend less due to the country’s economic woes. Gap has announced plans to triple the number of Gap stores in China from the 15 currently in place to about 45 by the end of next year. The reduction in stores in the United States will leave about 700 Gap namesake locations in the country by the end of 2013, down from the 1056 locations in 2007.
“It’s a shame they are closing Gap stores in the United States, because the Gap is where I get a ton of my clothes. Hopefully the one closest to me won’t be shut down,” said junior accounting major Max Ludwig. “It makes sense though, that companies would be looking overseas for more revenue while our country faces hard times.”
Despite recent hard times for the company, one student is still confident in the strength of Gap’s brand name.
“I mean, it’s the Gap. Coca-cola isn’t going to go out of business, Disney isn’t going to go out of business, Microsoft isn’t going to go out of business, and no matter how bad it gets, I seriously doubt a company like Gap is going to go out of business,” said junior journalism major Mike Gasper.