GAP TO REPLACE 200 UNDERPERFORMING STORES WITH OLD NAVY
Gap Inc. which includes brands Gap and Banana Republic, announced that they're closing 200 underperforming stores and will then open 270 new locations of the two brands that are doing well for them, Old Navy and Athleta. The company says the store closures should save them $500 million in expenses over the next three years.
Old Navy is expected to top $10 billion in sales in the next few years, while Athleta is expected to top $1 billion in sales, according to the Associated Press. A little over a year ago there was speculation about Gap declaring bankruptcy followed by a 2015 announcement of a couple hundred layoffs and the closure of 175 U.S. stores.