There was a lot of buzz over the weekend surrounding reports of the opening of Gap Inc’s GPS new Gap and Old Navy stores on New York’s Times Square. The new stores will be replacing an existing Toys “R” Us store at 1514 Broadway.
Located near the crossroads of Broadway and Seventh Avenue at West 44th Street, the Bow Tie Building is owned by Bow Tie Partners. The new Gap and Old Navy stores will occupy about 31,000 square feet space each, with separate entrances, once the lease of the aforementioned toy retailer expires in 2016.
Gap expects to complete the interiors of the new stores by early 2017. The company’s latest location at the heart of Time Square testifies its commitment to exhibiting its brands at the best locations to attract customers.
Gap’s new store expansion announcement follows the company’s recent plan to shut down underperforming stores, mainly in North America, and conduct layoffs at its headquarters.
Gap announced plans to shutter 175 specialty stores in North America in order to enhance the brand’s productivity and retain its presence in more successful locations. Out of these, the company will close 140 outlets in the current fiscal year, with further closures lined up for the next few years. Simultaneously, the company intends to shut down some stores in Europe.
The company stated that this decision will not have any impact on Gap Outlet and Gap Factory Stores.
Despite these closures, the brand will continue to have a network of 800 stores, including 500 Gap specialty locations and 300 Gap outlet stores in North America. Additionally, it will operate worldwide through 1600 company-operated and franchise outlets, apart from serving customers online.
Additionally, management plans to conduct about 250 layoffs at its headquarters during fiscal 2015.
Zacks Rank
Gap currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the apparel-shoe industry include American Eagle Outfitters Inc. AEO, Express Inc. EXPR, each with a Zacks Rank #1 (Strong Buy), and Citi Trends Inc. CTRN, with a Zacks Rank #2 (Buy).
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