Beleaguered retail giant Gap said Monday it will close 175 stores in the U.S., hoping to reverse its sales curse. Along with the closings, the retailer will cut hundreds of jobs.
The store closures will only impact Gap stores, and not the company’s other brands such as Banana Republic and Old Navy. Nor will the cost cutting measures affect Gap Outlet and Gap Factory stores. The San Francisco-based firm said most of the layoffs would happen at its headquarters.
“Returning Gap brand to growth has been the top priority since my appointment four months ago,” Art Peck, Gap Inc. CEO said in a statement. “Customers are rapidly changing how they shop today, and these moves will help get Gap back to where we know it deserves to be in the eyes of consumers.”
The moves come on the heels of a 10 percent slump in same-store sales last year and a 5 percent drop in the first quarter.
The company stock price was moving early this morning, with shares trading at $38.52, up 30 cents.