Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News GAP: Will exit the physical retail market in the UK and Europe

GAP: Will exit the physical retail market in the UK and Europe



Recently, according to Reuters, Gap will withdraw from all physical retail markets in the UK and Europe in July, retaining only its online business. It is understood that Gap currently has 95 stores in the UK, …

Recently, according to Reuters, Gap will withdraw from all physical retail markets in the UK and Europe in July, retaining only its online business.

It is understood that Gap currently has 95 stores in the UK, but its losses in the region last year exceeded 40 million pounds.

According to public information, GAP promised to pay off the rent of the stores that will be closed before July, but it can only afford lower interest rates. For this reason, landlords said it was unacceptable and may file a lawsuit against the group for unilaterally terminating the lease.

In October last year, Gap publicly stated that it was beginning to evaluate strategic options for its European business. One of the options being studied is the possibility of closing self-operated Gap stores in the UK, France, Ireland and Italy by the end of the second quarter of next year.

Gap will also explore transferring elements of its European operations to interested third parties as part of a proposed expansion of its partnership model.

In the Chinese market, Gap’s brand Old Navy also withdrew in early 2020, and the brand said it would focus on the development of the North American market. This is a somewhat unexpected ending for Old Navy, which has surpassed its main brand Gap in recent years and led the group’s overall growth.

Since the second half of 2020, Gap has added new stores in many places in China, mainly in new first- and second-tier cities.

According to reports, from May to September 2020, Gap will open 1-2 new stores almost every month. Since November, Gap has accelerated its store openings. In November and December, Gap opened five new stores each, and from the end of January to the beginning of February, it opened three new stores, plus one store was expanded and upgraded.

Currently, the Gap brand is sold in nearly 40 countries including Shanghai, Beijing, Shenzhen, Guangzhou, Taipei, Chengdu, Hangzhou, Nanjing, Xi’an, Wuhan, Chongqing, Sanya, Foshan, Kunshan and Huzhou. Nearly 220 stores have been opened in various cities, and online business is carried out through the official website and third-party platforms such as Tmall.

It is conceivable that by expanding its offline network to new first- and second-tier cities and gradually penetrating third- and fourth-tier cities, Gap hopes to strengthen the brand’s presence in China. </p

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Author: clsrich

 
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