Gap Stores Are Closing!
- Parents Only
By: Phoebe Ackland, ellaslist
It has just been revealed that Gap will close their 6 stores across Australia by January 2018!
According to Business Insider, the shutdown follows a spate of disappointing numbers: stocks recently dropped by 4.7% to $1, half-yearly results showed revenue down by 10% and net profit falling by 52%, and there was a disappointing mid-season sale last April followed by the stepping down of CEO Mark Newman. OrotonGroup owns the Gap franchise in Australia, and this decision to close stores will allow for more focus on their core Oroton Brand and minimising future losses, according to Business Insider.
Mind The Gap
There appear to be tough times ahead for the Australian retail scene, with the closure of Gap's Aussie stores following the voluntary administration of Payless Shoes, Pumpkin Patch, Howards World Storage and Dick Smith, and most recently, Marcs and David Lawrence.
According to news.com.au, OrotonGroup's Ross Lane said: “The Board and I thank the entire Gap Australia and Gap Inc. team for their dedication and substantial efforts to develop the Gap business in Australia over recent years. OrotonGroup also acknowledges the support and co-operation that it has received from Gap Inc. in amending existing arrangements.”
According to the Sydney Morning Herald, Gap employs 50 full-time and about 150 casual staff members, some of whom will be redeployed and others made redundant.
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