Gap, an American clothing giant, plans to cut stores in North America, Fox News reported. It is understood that gap has entered major shopping centers in the United States in the past few decades and has become a “frequent visitor” of these shopping centers. However, gap said it would close 350 stores by the beginning of 2024, equivalent to about 33% of all stores in North America. It includes 220 gap stores of the same name and 130 stores of its high-end brand “Banana Republic”. After these stores are closed permanently, up to 80% of the remaining gap stores will no longer be located in shopping malls. Gap will focus more on e-commerce after closing 30% of its North American stores, the report said. Gap, an American clothing giant, is ready to close 350 stores in one breath, according to foreign media reports, according to China Foundation news on the 25th. The company said it would close 220 gap stores of the same name by early 2024. That’s about 33% (one-third) of the total number of stores, and as much as 80% of the remaining gap stores will no longer be in shopping malls after these stores are permanently closed. As part of its restructuring plan, gap also plans to close 130 Banana Republic stores in North America within three years. Gap said the closure would help the group return to profitable growth in 2021. Foreign media reports pointed out that the group has launched a three-year reform plan. According to the plan, after closing 30% of its stores, the company will transform into a business model combining e-commerce with offline stores of non shopping malls. It is estimated that this channel model will constitute 80% of the company’s revenue by 2023. Gap group owns many brands, including gap, Old Navy, Banana Republic and ATHLETA, and now has more than 400 stores and 14 e-commerce websites in 35 countries. Affected by the epidemic, many stores have had to suspend business, and consumers have moved more to the online. Many American experts believe that the change in consumer behavior will be permanent. Just after the announcement of the gap’s three-year reform plan, the gap group’s share price rose 14% on the same day, reaching a 52 week high. < / P > < p > currently, gap is reassessing its business in Europe and may close gap stores in the UK, France, Ireland and Italy by the end of the second quarter of 2021. In addition, gap is also evaluating the warehousing and distribution modes, as well as the e-commerce operations of gap and banana republic in Europe, which may close an EU distribution center, and some of gap’s business in Europe may be transferred to a third party in the form of partners. After gap said it was conducting a strategic assessment of its European business and could close gap stores operating in the UK, France, Ireland and Italy by the end of the second quarter of 2021. Many investment banks on Wall Street are optimistic about this move and have raised the target price of gap. < / P > < p > RBC Capital Markets raised its target price to $28, Barclays raised its target price to $27, and Telsey advisory group raised its target price to $23. All three companies saw the benefits of gap’s downsizing program by cutting unprofitable stores. According to the report of BDO USA LLP, an accounting service company, at the beginning of the epidemic, the implementation of the mandatory temporary closure of shops and homes by the government aggravated the plight of the physical retailers. Consumers who stay at home are buying more online products than ever before, the report said. Major retailers such as j.c.penney Co. (JCP), Neiman Marcus Group Inc., GNC Holdings Inc. (GNC) and Brooks Brothers Inc. (brks) have filed for bankruptcy protection this year, closing hundreds of stores each. Since April, about 5000 stores in the United States have been closed forever, while only about 680 new stores have opened in the same period. Nearly 2200 retail stores closed in August alone, with only 14 new. < / P > < p > according to coresight research, a global market research firm, it is estimated that 25000 U.S. retail stores will close one after another. BDO said the high closure rate of physical stores is expected to continue. From January to mid August, more than 10000 physical retail stores were closed in the United States, including Macy’s Macy’s department store, bed bath & Beyond Inc. and gap Inc. Many of the stores that are going bankrupt are the main tenants of large shopping centers. Green Street advisors LLC, a real estate research firm, predicts that by the end of 2021, more than half of the U.S. shopping malls and department stores will be closed. < / P > < p > compared with the bustle of online shopping platforms, traditional industries are covered by the dark clouds of bankruptcy. According to S & P’s global market intelligence statistics, up to now, more than 500 large-scale enterprises have applied for bankruptcy in the United States this year, exceeding the number of bankruptcy applications in any comparable period since 2010. According to the American bankruptcy Association, U.S. commercial bankruptcy filings increased by 38% in September to 3072, a year-on-year increase for 11 consecutive months. In September this year, there were 855 applications for commercial bankruptcy, an increase of 38% over the same period last year. According to Edward Altman, emeritus professor of New York University’s Stern School of business, if the rate of bankruptcy continues to be so high, by the end of this year, the number of US $1 billion or above enterprises going bankrupt may reach 65. The previous high of 49 during the economic crisis in 2009 will break the record this year. < / P > < p > the wave of bankruptcy affects not only the physical retail industry, but also the traditional industries such as oil, aviation and entertainment. Global Eagle Entertainment Inc., headquartered in Westchester, filed for Chapter 11 bankruptcy protection on July 22. Global Hawk gets non dramatic distribution and music from Hollywood and international independent producers, while also providing travelers with satellite based WiFi Internet. In the novel coronavirus pneumonia, Christian Mezger, the Global Hawk chief financial officer, said that the airline had been suspended or had seriously reduced its operations because of its adverse impact on the new crown pneumonia epidemic and was unable to submit bankruptcy applications. Skip to content