The Gap will close all 81 stores in the UK and Ireland, and only sell online
Another blow to the British retail industry is that the American clothing company Gap said it will close all its stores in the UK by the end of this year because its business is only conducted online.
The closure will be carried out in stages before the end of September, including the company’s store in Ireland. A total of 81 stores will be closed.
It is not clear how many jobs will be affected, but the company insists it will provide “support and transition assistance” to its employees.
Gap said in a statement late Wednesday: “The e-commerce business continues to grow, and we want to meet with customers where they shop and point out that it intends to become a “digital first business”.
This retailer has been active in the UK since 1987 and has been active in Ireland since 2006. It is a symbol of the typical American “T-shirt and jeans” look that has been popular for decades. Hoodie and denim with the company name printed on it are long-selling products.
But in recent years, the appeal of Gap has plummeted and it has been eliminated by e-commerce sites, making its products seem unremarkable.
This is also the latest victim of a pandemic that has hit the British economy. The long-suffering department store chain Debenhams and the Arcadia Group, the retail empire of billionaire Philip Green, including Topshop, are the two biggest victims in recent months.
“When this American retailer closes its last store at the end of September, it will leave a huge gap on the street. Given the well-known brands that have left physical stores behind, this will be difficult to fill,” stockbroker Hargreaves Lansdown Said Susannah Streeter, senior investment and market analyst at.
Last year, after imposing blockade restrictions, the United Kingdom experienced one of the worst recessions in the world. Although the relaxation of restrictions has led to economic recovery, given that a large amount of shopping is now carried out online, there are still doubts about the future of the retail industry.
The impact of COVID on retail
Not all British retailers have suffered like Gap.
Primark, a competitor known for low-cost fashion, praised “several new sales records” on Thursday, “this reflects the increased confidence and willingness of our customers to spend.” The brand does not have an online retail department, but said that despite being blocked As a result, it will continue to promote store openings and investments in the UK and Europe.
Another competitor, H&M of Sweden, also issued a more optimistic tone because it achieved better-than-expected profits after sales rebound.