This Could Be Why Gap Stores Are Closing Down In Malaysia
To date, the Gap store in the Gardens Mall is the third one to close.
By Jia Vern Tham — 09 Feb 2018, 05:36 PM
Earlier today, Gap Malaysia announced on its Facebook page that the Gap and GapKids store in the Gardens Mall will be closing soon
Following the announcement, netizens began speculating if the stores are closing worldwide as well. Furthermore, some also asked if there will be a clearance sale before the stores officially close.
This isn't the first Gap store to be closed in Malaysia recently, as the ones in Pavilion KL and Queensbay Mall suffered the same fate as well
In January, Gap announced about the closure of the outlets in the two other malls.
According to some commenters, the Gap store in Queensbay Mall was officially closed on 4 February, while the one in Pavilion KL was on 7 February.
There hasn’t been any news on the closure of the other stores in Malaysia.
However, this isn't a surprising move from Gap, considering that the parent company announced last year that they are closing "underperforming" stores around the world
On 6 September 2017, CNN reported that Gap Inc., the company that owns both Gap and Banana Republic, announced that it will close about 200 "underperforming" stores worldwide.
Furthermore, both brands have been seeing declining sales in the last few years due to the rise of "so-called" fast fashion retailers such as Forever 21 and H&M.
In August 2017, Gap's comparable sales fell by 1% and Banana Republic's were down by 5%.
To make sure the company continues growing, Gap Inc. is shifting its focus to its better performing brands, Old Navy and Athleta
According to Los Angeles Times, Gap's Chief Executive Art Peck told analysts at a Goldman Sachs Global Annual Retailing conference last year that the company will "continue to move with the customer and meet them where they are."
In the next two years, Gap Inc. will open about 270 Old Navy and Athleta stores around the world.