Say Goodbye to Gap's Store on 5th Avenue

01:59 12/27/2018

There are just a few weeks to go until Gap shutters its Fifth Avenue store in New York according to a New York Post article. A company spokeswoman has said to CNBC that Gap is closing the three story store on January 20th but did not give an explanation as to why the store is closing. The location used to be Gap's flagship store until its store on Times Square took its place. Gap is considering closing hundreds of locations "aggressively" so it can focus on higher-performing stores. Last month the company's CEO Art Peck said on a call with investors that sales at Gap stores have fallen 7 percent over the last 12 months, while other brands like Old Navy and Banana Republic have seen a boost, forcing the company to “address” the issue. "There are hundreds of other stores that likely don't fit our vision for the future of Gap brand specialty store, whether in terms of profitability, customer experience, traffic trends,” Peck had remarked. “I plan to exit those that do not fit the future vision quickly. I'm going to move thoughtfully but aggressively,” he added. Peck said that Gap will be closing stores that were unprofitable, had low traffic, or didn't offer a good customer experience. He noted, "We have had a lot of stores that are in the bottom half of the fleet that have continued to deteriorate over time. And it is my strong belief that we've kicked the can down the road on this and offered a deteriorating customer experience ... These stores are a drag on the health and a drag on the performance of the brand." Bob Phibbs, CEO of New York-based consultancy firm the Retail Doctor, remarked to FOX Business, "With such heavy foot traffic in New York City, if Gap was going to make it anywhere, they should have been able to make it here. Now, Gap is cutting off limbs in hopes of survival." "The reality is that the retailer simply can’t keep running 40 percent off sales and expect to be a national brand that people go out of their way for," he added. "Without that understanding of its shoppers, the brand can’t expect to be around for much longer.”0

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read