It’s a tough week for retail, Banana Republic closes stores in the UK amid disappointing sales. WGSN Global News Editor Nigel Taylor reports
Gap Inc, the parent company of Banana Republic, Gap and Old Navy, is set to close all eight of its Banana Republic stores in the UK with most going before the end of the year. As Banana Republic closes stores, it will continue to serve its UK customers through the brand’s dedicated website, Gap said.
The move follows Gap’s decision in May to shutter 75 Banana Republic and sister brand Old Navy stores overseas “to sharpen its focus on geographies with the greatest potential” and to concentrate more on reviving its North America fortunes.
The group has already announced it will close all 53 Old Navy stores in Japan this year.
CFO Sabrina Simmons said Gap planned to close poor-performing Banana Republic stores and work to streamline the brand’s operating model. The chain continues to operate one store in France and one in Italy.
Net sales at Banana Republic’s European division fell 15% to $17m in the most recently reported quarter. While overall August same-store sales fell 3%, Banana Republic fell 10%.
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