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Gap Inc (GPS) To Refocus On Old Navy, Athleta In Turnaround Plan

Gap Inc (GPS) To Refocus On Old Navy, Athleta In Turnaround Plan

Fashion retailer Gap will shut down around 200 underperforming Gap and Banana Republic stores across the world over the next three years, as it seeks to focus on its Old Navy and Athleta stores expansion.

Louisiana has nine Gap stores and seven Banana Republic stores, including three Gaps and two Banana Republics in the New Orleans area.

When Gap reported second-quarter earnings on August 17, the NY retailer revealed that Old Navy same-store sales were up 5% year over year, while Gap sales fell 1% and Banana Republic sales dropped 5%.

As a part of its growth strategy, Gap is aiming to focus on the retail store where customers are shopping more and close the specialty stores where the production rate is significantly low.

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"This is an industry that is not historically rewarded scale and leverage", Gap CEO Arthur Peck told analysts at the conference.

Meanwhile, Old Navy has done relatively well, with sales up five percent last month.

Gap said in a statement posted online Wednesday that it also expects Athleta, a trendy athletic wear brand, to drive growth.

"We are not releasing detailed information about a specific opening date, but I can confirm though, that Athleta is planning to open our first store in Little Rock later this year, which is also our first store in Arkansas", said Laura Hogya, a spokesman for the San Francisco chain.