Due to low sales, 175 underperforming Gap stores are closing across North America, along with the chain eliminating more than 250 corporate jobs. Store sales have been in decline for the past five quarters and this action is an attempt to save and revive the leftover stores. Once these stores are closed, Gap will be left with 500 regular retail stores and 300 retail outlets. And it projects to be saving $25 million by 2016.
But what Gap really needs to save is its brand.