Gap Will Close The Loss Shop And Open Old Navy New Store.

According to the world clothing shoes and hats net, September 7, 2017:

Inc. (NYSE:GPS) Cape group disclosed its focus on Wednesday

After the development and reorganization plan of the two growth businesses of the Old Navy and Athleta, the stock price surged up to 7.8% to 25.91 US dollars.

In view of the same name

Gap cape and Banana Republic Banana Republic, after a long period of reform and revitalization, is still in the doldrums. The Gap Inc. group, at the twenty-fourth Goldman global retail summit yesterday, announced that the pformation strategy will focus on the three major areas of group customers' Consumption: e-commerce, cheap products and sportswear, in other words, the two growth brands of Old Navy and old navy and Athleta.

Art Peck, group president and chief executive, said that it will push the Old Navy Navy Navy and Athleta to reach the annual sales of US $10 billion and US $1 billion in the next few years by promoting the growth of online and mobile channels, expanding the US retail market and consolidating the leading position in the category of loyalty.

Data show that the Old Navy brand, founded by J.Crew Group Inc. chairman Mickey Drexler in 1994, was Old $6 billion 814 million in last year's sales, up 2.1% from the same period last year, mainly due to the "cheap and benevolent" consumption mentality of the American public class.

After 5 years of continuous growth, the old navy of Old Navy has become the biggest brand of Gap Inc. cover group.

The fourth largest business, Athleta, is a multi-year competitor from Lululemon Athletica Inc. NASDAQ:LULU (NASDAQ:LULU), which sells women's Yoga wear. It has been growing at double-digit levels since 2016.

With the Lululemon Athletica Inc. reducing children's clothing business and ivivva's retail network for online sale only, the Athleta Girl of girls' product line of Athleta is expected to be significantly benefited.

At present, only some Athleta stores sell Athleta Girl, but from the beginning of this autumn, Athleta Girl Girl, which sells for $49-59, will be located at all Athleta outlets.

Art Peck said that the expansion of Athleta Girl is to respond to the needs of customers. He also directly compared the decisions made by Lululemon Athletica Inc. to the closure of all girl children's (ivivva) stores and the expansion of Athleta Girl.

Since 2005, Gap Inc. has finished 650 stores.

Gap Inc. Cape group plans to open 270 new stores for Old Navy Old Navy and Athleta in three years, while closing 200 Gap cap and Banana Republic banana loss shops, hoping to achieve annual savings of 500 million dollars.

Art Peck emphasizes that the two businesses are still profitable.

In the past two years when Gap and Banana Republic Banana Republic face the difficulty of breaking through the crowded clothing market, the old navy of Old Navy has always been the growth pillar of Gap Inc..

Without the support of the brand, the group could not achieve same store sales growth in the past three consecutive quarters.

According to the data, in the last two quarters, the sales of Old Navy Old Navy's same store increased by 5%, while Gap and Banana Republic banana declined 1% and 5% respectively, but the decline was already narrowing by season.

The excellent performance of the Old Navy Old Navy and the low discount promotion rate pushed the group to achieve a profit beyond the market expectations in the last quarter, so the group raised its EPS forecast for the whole year.

As of July 29th, the old navy of Old Navy has 1051 stores in the North American market, a net increase of 5 stores at the beginning of the two quarter, while Athleta Athleta maintains the retail scale of 133 stores.

During the period, Gap and Banana Republic, the Banana Republic, closed one store, and the total number of stores in the North American market was 834 and 596 respectively. The total number of Gap stores in the world was 3642, with a net decrease of 10 stores in the period.

In the case of shrinking retail sales and customer access to online channels, Art Peck revealed that since 2005, the group has closed 650 stores and reduced the retail area by 5 million square feet.

Art Peck pointed out that the online and mobile businesses are the sectors that achieve the highest sales and profit growth. None of them will invest $750 million in the next three years to promote further growth.

Gap Inc. (NYSE:GPS) received $25.82 on Wednesday, rising 7.45% throughout the day, expanding its cumulative growth in 2017 to 15%.

More interesting reports, please pay attention to the world clothing shoes and hats net.