Gap will shutter roughly 75 of its international Old Navy and Banana Republic stores, as its aims to focus on the North American market to help return its group to greater profitability. The store closures include all its 53 Old Navy outlets in Japan and additional international locations, according to the company, after reporting dismal first-quarter sales of its top three brands.
"Old Navy's near-term growth ambitions will be anchored in North America, including its most recent debut of company-operated stores in Mexico, as well as China and its global franchise operations," the company said in a statement. The retailer had 1,029 Old Navy stores in North America and 69 in Asia, as of April 30. It also has 607 Banana Republic stores in North America and 61 in Asia and Europe.
The company has further that that it expects the store closures to result in annualized sales loss of about $250 million but help save $275 million on an annualized pretax basis.