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Gap to axe 250 jobs, close down 8 stores in France
US brand Gap has decided to shrink its retail operations in France, closing down eight of its 30 stores in the country, as part of the international store closure plan, involving 230 shops, which was announced last February.
As reported by French daily paper Le Monde, the French stores set to shut are all located in the Paris region, and include some prime locations: in Paris itself, the rue de Rivoli flagship and the stores on passage du Havre and boulevard Saint-Michel will close down at the end of September, and the one in the 4 Temps shopping mall at La Défense will follow suit in October. Gap’s largest Parisian store, on the Champs-Elysées, is slated to close in 2020, as is the branch in boulevard des Capucines. A first closure took place at the end of August, at the Créteil Soleil shopping mall.
FashionNetwork.com has learnt that the closures also involve an employee protection plan affecting 250 jobs. The plan was signed off in August by the management and the employee representatives, at the end of lengthy negotiations.
FashionNetwork.com has contacted Gap, which so far declined to answer any questions.
Some employees fear that a new wave of shop closures might be forthcoming in France, as Gap Inc. is expected to announce very soon the arrangements concerning the separation of its Gap and Old Navy brands.
Gap’s French subsidiary employs nearly 800 people and generated sales worth €35.6 million in 2018, equivalent to a 17.2% shortfall compared to 2017, according to figures published by société.com. Gap entered the French market in 1994.
In Q2 2019, sales for Gap Inc., which was founded in 1969, lost 2%, falling to $4 billion (€3.62 billion), corresponding to a 4% decrease in like-for-like terms. Comparable sales for the Gap brand were also down, by 7%.
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