SAN FRANCISCO—Gap Inc. announced on Monday, August 17 that the company is permanently closing its flagship locations in San Francisco this month.
The store at 890 Market Street and the one in the Embarcadero Center will no longer serve customers. In addition, the store at Stonestown Galleria already closed in July.
The only Gap location that will remain open is on Chestnut Street. The company’s other brand locations including several Banana Republic stores, the Old Navy on Market Street and Athleta locations as well as Intermix on Fillmore Street are still open to customers.
“As part of Gap Inc.’s strategy to adapt to the changing needs of the customer and growth of our online business, we are looking thoughtfully at our real estate to support the best path forward,” said the company in a statement, adding that it is closing a number of stores across the Gap Inc. fleet.
Gap Inc. continued to say, “we are committed to quickly and decisively addressing stores that are underperforming and reviewing lease agreements that don’t fit our vision for the future of Gap Inc.”
The corporation stated that the closures of some of its stores can help it move forward, stressing that employees are encouraged to secure job opportunities at other locations within its brands.
An SEC report also shows that the company has suspended rent payments for its stores in North America since April, which was approximately $115 million per month.
In a March 30 statement, Sonia Syngal, President and CEO of Gap Inc. stated that the company is in a position where deeper actions should be taken. “Each decision, however difficult, has been made to ensure that we build toward a future where Gap Inc. can come out of this stronger – for our customers, our shareholders and, most importantly, our teams.”
