GAP believe in the power of partnering to amplify their brand internationally and they are committed to serving their customers in Europe. As part of 2023 Power Plan, Gap began a strategic review of the company-operated business in Europe last year with the goal of finding new, more cost-effective ways to maintain a presence and serve customers in Europe. They conducted an extensive evaluation of potential partners for their business in France, Italy, the Republic of Ireland and the United Kingdom. During this process, it became clear that they would likely have a different outcome in each market.
They are pleased to share that they have identified a potential partner for France. The company is in negotiations with Hermione People and Brands, the retail branch of FIB Group, to take over Gap stores in France.
In Italy, they are in discussions with a partner for the potential acquisition of Gap stores and look forward to sharing more information when it is available.
In the United Kingdom and Europe, GAP is going to maintain online business. The e-commerce business continues to grow and they want to meet their customers where they are shopping. They’re becoming a digital first business and looking for a partner to help drive online business.
However, due to market dynamics in the United Kingdom and the Republic of Ireland, they shared with their team that they are proposing to close all company-operated Gap Specialty and Gap Outlet stores in the United Kingdom and Republic of Ireland in a phased manner from the end of August through the end of September 2021. They are thoughtfully moving through the consultation process with European team, and will provide support and transition assistance for colleagues as they look to wind down stores.
Gap has served customers in the United Kingdom since 1987 and the Republic of Ireland since 2006. They are keen to maintain their presence in these markets.
Gap brings Modern American style to customers in more than 40 countries around the world through a combination of company-operated and franchise stores and e-commerce sites. Franchise partnerships are a strong and cost-effective way to amplify the brand in international markets. Through franchise, Gap brand reaches customers in 35 countries with more than 460 stores, 14 standalone e-commerce sites and more than 160 multi-channel or pureplay e-commerce sites.