Gap Inc. to close 225 stores

Gap Inc. has announced they will be closing an additional 225 Gap andBanana Republic stores, with additional store closures planned for 2021.The company is even closing Gap's San Francisco flagship store. AlthoughGap is seeking net losses, they are still performing better thanexpected. Second quarter net sales fell 18 percent year over year to 3.3billion dollars, with sales at Gap down 28 percent, Old Navy down 5percent, Banana Republic down 52 percent and Athleta up 6 percent.

Like the majority of apparel retailers, Gap took a major hit to theirbusiness over months of store closures. They were even sued for unpaid renton one of their New York Midtown stores. The bright side for Gap Inc. isthey have seen their e-commerce sales more than double from last year.

Gap has also been selling face masks, which have added 130 million dollarsto their revenue. E-commerce has brought in 3.5 million new customers,representing 165 percent increase in customer acquisition.

Some of the biggest news coming out of Gap this year is the 10-year dealthey signed with Kanye West and his Yeezy brand for a collaboration. Thecollaboration is expected to expand Gap's customer base and boost revenues.Kanye West's Yeezy sneakers are known to sellout very quickly.

Under the management of Gap Inc. CEO Sonia Syngal and CFO Katrina O'Connellthe company has taken a tough approach to returning to profit. The numberof stores in their fleet continue to be slashed and a heavier focus isbeing placed on e-commerce. Gap Inc. has faced many tough economicchallenges including the shift of consumers to online shopping, decliningtraffic in malls where many of their stores are, and a shrinking customerbase for middle market brands.

Athleta seems to be the shining hope of the future for Gap. As moreconsumers turn to shopping for work from home life and the globalathleisure market is still growing, Athleta is seen as a billion dollarbrand that is only going up from here. While a recession and years of poorperforming stores are still weighing on Gap Inc., their turnaround appearsto be well on the way.

photo: via Gap Inc. Media Center