Gap Inc. Shrinks U.S. Stores by 21% to Fuel International Expansion
Gap Inc. is streamlining its distribution network, reducing U.S. stores by 21% and focusing on international expansion. The company's revenue and profits have seen a decline in the first nine months of the fiscal year, with revenue falling by 0.33% and profit dropping by 26.6%.
Gap Inc. aims to reduce its U.S. store count by 34% to 700 by 2013, down from 1,056 in 2007. This move is part of a larger strategy to reorganize its distribution network and focus on international growth. The company has been expanding in key international markets like China and Southeast Asia, opening new stores and investing heavily in these regions. However, it has also faced challenges and has closed stores in some Western markets to focus on digital growth and profitability.
The company's revenue for the nine months fell to $10.266 billion (€7.617.5 million), a 0.33% decrease compared to the same period in 2010. Profit also took a hit, dropping by $224 million (€166.2 million) to $615 million (€456.3 million), a 26.6% decline from the same period in 2010.
Gap Inc. is adapting its business strategy to focus on international growth, reducing its U.S. presence to invest in key international markets. Despite a decline in revenue and profit, the company is committed to this strategic shift, aiming to improve profitability and digital growth.
