The Gap Inc. (NYSE: GPS) has stated that it will close all 81 of its shops in the United Kingdom and Ireland by the end of September and focus on e-commerce in those markets.
What happened was this: The San Francisco-based company was started in 1969 and launched its first store outside of the United States in London in 1987; it has been operating in Ireland since 2006.
The Gap cited “market factors” in the two nations as the reason for the closures, and claimed that it would exit brick-and-mortar retailing in a “phased way” commencing at the end of August.
In a statement, the firm stated, “We are thoughtfully progressing through the consultation process with our European team, and we will provide support and transition help for our workers as we move to wind down stores.”
Associated Link: Marco Gobbetti, the CEO of Burberry, has resigned to join rival Ferragamo.
What Else Has Happened: The Gap is intending to exit brick-and-mortar retailing in France and Italy, but is in talks with other companies to take over those operations.
Closer to home, the firm has started closing Gap and Banana Republic stores across the United States and Canada. For shoppers in the United Kingdom, however, the company’s departure is the latest in a string of store closures that includes Marks & Spencer Group ADR (OTC: MAKSY), Debenhams, and Laura Ashley.
(Photo courtesy of Nick-D/Wikimedia Commons.)
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