Paris, France |

AFP |

Wednesday 10/21/2020 - 13:18 utc + 2 |

323 words The American ready-to-wear brand Gap is launching a strategic review of its activities in Europe.

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Levine-Roberts / Sipa USA / SIPA

The brand is facing economic difficulties linked to the coronavirus crisis.

The American ready-to-wear brand Gap is launching a strategic review of its activities in Europe.

“One of the options under consideration is the possible closure of our company-run Gap stores in the UK, France, Ireland and Italy at the end of the second quarter in 2021,” said Mark Breitbard , international director of the Gap brand, in a press release published on the group's website.

The group also intends to review its distribution and marketing model in Europe, which could result in the closure of its European distribution center located in Rugby in the United Kingdom, specifies the manager.

Another alternative: franchise

Another option put on the table, the transfer of activities to "interested third parties as part of a project to expand the partnership model", through franchises which constitute "an effective and profitable means of amplifying the brand. ".

"Thanks to the franchise, the Gap brand reaches customers in 35 countries with more than 400 stores and 14 e-commerce sites", specifies the group.

Revenue down 18%

The group, affected like the rest of the fashion sector by closures linked to containment measures around the world, had 129 Gap stores in Europe at the beginning of August.

Between February and August, Gap had already closed 11 stores in Europe, 66 in North America and 10 in Asia.

Stores of its other brands - including Old Navy, Banana Republic - have also been closed.

The Gap group had recorded in the second quarter revenues down 18% to 3.3 billion dollars and a net loss per share to 0.17 dollars against net earnings per share of 0.44 dollars a year earlier.

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