Gap Plans Major European Shake-up

Fashion retailer Gap will close its 81 stores across the U.K. and Ireland and become entirely ecommerce-focused across the area, following a strategic review of its operations across Europe last year. As the business seeks to find “more cost-effective ways” of operating in Europe, it has also been exploring partnerships and acquisitions in France and Italy. For the U.K. and Ireland, which it has operated within since 1987 and 2006 respectively, Gap has said that it plans to continue to grow its online business and is looking for a partner to support its digital-first ambitions as a result of "market dynamics." All Gap Speciality and Gap Outlet stores will be phased out across the U.K. and Ireland before the end of September 2021. In France, the company is in negotiations with Hermione People and Brands for a takeover deal for its stores across the country. “We believe in the power of partnering to amplify our brand internationally and we are committed to serving our Gap customers in Europe,” concluded a Gap statement announcing the plans. According to its unaudited financial results for the first quarter, which ended May 1, Gap saw growth in sales across Europe to $72 million from the previous year of $57 million during the start of the Covid-19 pandemic, but significantly down on 2019’s total of $124 million for the region in the first quarter of 2019. While addressing the financial results, Gap chief executive Sonia Syngal revealed a global growth in online sales of 82% compared to 2019. “Gap’s Twitter strapline is ‘Optimistic American style,’ but their U.K. Twitter account offers little hope as it’s dead, hardly getting any likes,” stated Jonathan A. J. Wilson, professor of brand strategy and culture at Regent’s University, to Adweek. Through a simple online search, Wilson also pointed out that Gap was the most costly when it came to a price comparison he did for a simple white T-shirt against high street rivals such as Zara, M&S, Boohoo, Uniqlo and Primark. “I don’t think their lofty ideals resonate anymore with their audiences, nor do their prime location flagship stores,” he continued, highlighting the importance of local influencers on modern fashion buying too, something Gap also lacked. “Sports brands like Nike and Adidas have expanded their portfolio, purpose and reach with athleisure, offering snappy collaborations, customization, fabric technology, larger sizes—and all packaged up with iconic celebrities. Ronaldo has more Instagram followers than Nike and Juventus. Pogba has more than Adidas and Manchester United. And then you have Beyoncé with Ivy Park and a whole host of others. There’s no space for Gap,” Wilson said. “Add to that the fact we’ve got used to shopping online in a big way during the pandemic. The travel, the mask, sanitizer, walking around, rummaging for items, the checkout queue all seemed long—when we can get more choice online, delivered in time, and instead use that time to multiscreen socialize and binge on Netflix.” 'This One Feels Different': Gap's New Campaign Elevates the Voices of Activists and Artists