Gap said on Thursday that it would be lacking in two companies. One of the companies will include Old Navy, while the other company consists of NewCo, Gap, Banana Republic and other bridges, including Athlet and Hill City.
The movement was developed to make old navies – which grew $ 8 billion in annual sales, by setting up the first store in 1994 – to expand itself. Meanwhile, the company can consolidate its older fires like Gap and Banana with its newcomers like Athleta and Hill City. NewCo will have $ 9 billion in annual sales.
"We think the best way for every business to grow and meet the changing needs of our customers is to make them separate strategies separately," said Gap CEO Art Peck on Thursday. Peck will celebrate NewCo. Sonia Syngal, director of Old Navy, will keep that company.
The divorce is a story of two large different companies: the Old Marine has grown over the past few years and the sales in stores again in any case one year grew 3% in 2018.
Meanwhile, the Gap keel – its sales fall 5% load year. Banana Republic succeeded in stores, which helped the company to improve sales.
"Old Navy remains the market of Gap and Banana Republic, and is one of the fastest-growing major appliances markets," said Christina Boni, analyst at Moody's.
The Gap, which was founded in 1969, became the coldest brand in retail: the red the bare tree in the back of & # 39; The 20th century, and its logo sweatshirts and turtlenecks won over everybody from boys to mother and posts like Sharon Stone.
The business has been talking about how & # 39; t makes the Gap a fun part of the business. In November, Peck described Gap's store as unprofitable. From the end of the last fourth there were 1,224 Gap stores worldwide. Of these, 758 were in North America.
On Thursday, the company has said it will close 230 gap shops over the next two years as part of its plan to 'mop Gap & # 39; revitalizing life & # 39; The locks affect "specialty" GAP stores, where there are no Mall-based stores.
Most of these stores will be in North America, Peck told analysts Thursday. Chief financial officer Teri Stoll added that the business focused on stores that did not deliver, were in "false locations" or were not "strategic fit".
About 130 of those walks will fit this year, according to Gap. The company is also planning to open the locations of Old Navy and Athleta. Athleta, who is part of the new Gap business, is a women's watch chain that was a success. Hill City has launched this year as Gap & # 39; s men & # 39; s athleisure brand.
Gap thinks it should be between $ 250 million and $ 300 million before the taxes in the next two years are planned to close, according to a security of use. It is expected that the companies will split in 2020.
But some analysts are asking how many important letters such as Athleta and Hill City were included in NewCo with the camp of Gap.
"This may be a chance for a new start for Gap," said Bob Phibbs, director of consultant Retail Doctor. "It is just the NewCo bridges to install, even though the ringtone is for another gameplay and replay."