Sept. 7 (UPI) — Gap Inc. will close 200 of its Gap and Banana Republic stores over the next three years, the company announced Wednesday.
The closure amounts to about a 10 percent reduction of the company’s total number of Gap and Banana Republic retail outlets after years of declining sales, reported CNN.
The company did not reveal which stores will close.
While fewer people have been shopping at both stores, the company has had robust sales at its Old Navy and Athleta stores. As a result, Gap Inc. is planning to open approximately 270 more of those stores at the same time it shutters the others.
“Over the past two years, we’ve made significant progress evolving how we operate,” Gap Inc. CEO and President Art Peck said in a statement. “With much of this foundation in place, we’re now shifting our focus to growth.’
Gap expects Old Navy to exceed $10 billion in sales over the next few years, according to MarketWatch.
Large retailers have been at risk of going bankrupt as a result of an increase in online shopping and fewer people going to malls.
Earlier this year, Sears Holdings closed down 150 of its Sears and Kmart stores.