US one of the largest clothing and accessories retailer Gap considering the closing of all stores in the UK and Europe. Due to this, thousands of workers have been laid off.
Gap said in a statement that it would close stores in the United Kingdom (UK), France, Ireland and Italy by next summer.
At the same time, the UK-based Europe supply center will also be closed. However, the company did not comment on how many Gap stores there are in the UK and how many employees work there.
Gap’s sales have fallen sharply in recent years. The situation has worsened due to coronavirus infection. The Gap accounted for a loss of £780 million in the March-May quarter.
Now they are considering whether to move the business to a franchise model instead of running its own store. By the end of July, Gap had 129 stores and 400 franchise stores across Europe.
Mark Brettbird, head of Gap Brand Global, said: ‘We’ve reviewed it. We are now interested in relocating to a third party as part of our business expansion. ‘ A spokesman for Gap said they were also looking at alternative ways to manage European e-commerce.
Many retail stores in the UK have closed permanently in addition to being temporarily closed due to lockdowns taken to prevent corona. Although the business was gradually launched at the end of the lockdown, the buyer presence was markedly low.
The coronavirus epidemic has also contributed to the increase in the online shopping habits of consumers. However, before the onset of the epidemic, the gap was struggling to attract buyers.
Once popular with young people, Gap could not keep up with affordable brands like Zara, H&M and Forever Twenty One. Earlier this year, Gap announced plans to close 225 nonprofit stores in Gap and Banana Republics around the world.