Gap Store Closings 2021: Consumer Shopping Habits Force Locations To Shutter In Move To Online

Gap Inc. (GPS) has announced that it is shuttering all of its Gap stores in the U.K. and Ireland by the end of September.

The retailer said it will undergo a phased wind-down of the locations that will commence at the end of August at its company-operated Gap Specialty and Gap Outlet stores located in the two countries.

Gap Inc. cited “market dynamics” as the reason for the closures.

Gap stores have been open in the U.K. since 1987 and in Ireland since 2006. The U.K. launch was Gap’s first foray into the international apparel market.

The closures will affect 81 locations across the two countries, CNN reported. It was unclear how many jobs would be affected by the store closings, Gap Inc. did say that it would provide “support and transition assistance to our colleagues as we look to wind down stores.”

The decision comes as Gap Inc. looks to grow its online business in the U.K. and Europe amid the pandemic as consumers shifted to online shopping during lockdown orders to prevent the spread of the virus.

Gap Inc. said in a statement, “The e-commerce business continues to grow and we want to meet our customers where they are shopping. We’re becoming a digital first business and we’re looking for a partner to help drive our online business.”

These are not the first closures to hit international stores, as Gap Inc. announced a strategic review of its European operations in October 2020.

At the time, it evaluated partners for its Gap business in France, Italy, Ireland, and the U.K., which the company said “became clear that we would likely have a different outcome in each market.”

The company also announced hundreds of stores closures in North America in 2019, reducing its brick-and-mortar footprint by nearly a third.

A possible partner deal is also in the works in France with Hermione People and Brands - the retail branch of FIB Group - for its Gap stores, and a potential acquisition of Gap stores in Italy is currently in the discussion stage, the apparel retailer said.

Gap Inc., which also owns the Old Navy and Banana Republic brands, has more than 460 Gap stores in 35 countries, through franchise.

Shares of Gap Inc. were trading at $34.15 as of 11:12 p.m. ET on Thursday, a gain of 49 cents, or 1.47%.