GAP Closes Another Store, And Chengdu Stores Will Be Reduced To 6 Stores.

GAP will officially close its store in Chengdu in the near future, according to public comments and users in Chengdu.

In this regard, the winning business network call the store, understand that the shop is currently conducting heavy discount promotions, activities as of February 28, 2019, the specific closing time to be determined.

In 2016, the GAP brand closed the Chunxi Road store in Chengdu (January 17, 2016 closing shop) and the Raffles Plaza Store (closed in October 24, 2016). After the closure of the 339 joy song shop in Chengdu, its stores in the Chengdu market will be reduced to 6 (including 3 regular shops and 3 outlets).

It is understood that in recent years, due to product sales decline, poor performance and other reasons, GAP chose to close shop stop, closed a large number of stores in the world.

In 2015, GAP announced that it closed 175 stores in the North American market. It was called the closing of the second major stores in GAP in the past ten years.

In September 2017, the company's strategic planning announced on the official website pointed out that Gap and Banana Republic will close about 200 stores in the next 3 years based on nearly 200 stores closed since 2014.

However, continuous closure, layoffs and replacement of CEO did not improve performance.

In January 20th this year, the flagship store of GAP Fifth Avenue in New York was also officially closed. The store has been operating for 20 years. It is reported that the rise in rent and sales decline are the main reasons for its withdrawal.

On the one hand, it is a large number of global stores. On the other hand, GAP group said it will take the Chinese region as one of its breakthroughs. According to the winning business network monitoring, in January 2018 -9, Gap brand opened 14 new stores in China, more than 2 stores opened in 2017, and the pace of development in the Chinese market has accelerated.

According to the latest financial data of GAP group, sales in group group increased by 6.5% to 4 billion 89 million US dollars in the third quarter of November 3, 2018, and net profit increased 16% to 266 million US dollars.

It mainly benefited from the growth of sales of Old Navy and Banana Republic, while the sales of main brands GAP fell by 7% compared with the same period last year, while the same store sales in the first quarter and the second quarter showed a 4% decline.

In the 2017 fiscal year, GAP brand's annual sales volume was $5 billion 318 million, a year-on-year decrease of 2.5%.

For the third quarter performance of GAP brand, Art Peck, the group's chief executive, admitted that she was not satisfied, and said she would not rule out bold and necessary steps to ensure that the brand brought value to shareholders.

In addition to the appointment of new executives, the group is considering closing hundreds of poorly performing GAP stores.

Is the closing of the store a strategic adjustment or an early warning?

It needs to be tested and verified by the market.

As one of the largest apparel companies in the United States, Gap has been a synonym for avant-garde and cool. Nowadays, the fast fashion brand of fast fashion brand, such as GAP, has become the norm. The industry generally believes that the charm of fast fashion brand is no longer, the loss of customers and the ability to absorb gold. As a result of the change of the new generation of consumer groups, with the promotion of the consumption pattern, consumption level and consumption demand, people are more interested in individualization, fashion and design ideas. The fast fashion brand wants to regain the market. It is bound to learn to seize new customer value points, open new market channels, create products with low price quality, a higher price to price ratio, stronger design sense, and consumer recognition in product and creativity.