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Gap store closing may spur new customer experience for brand fans and Old Navy, Banana Republic shoppers

Retail giant Gap Inc. may be closing down 175 North America stores and laying off about 250 workers but there may be a huge silver lining for another brand within the conglomerate.

June 19, 2015

Retail giant Gap Inc. may be closing down 175 North America stores and laying off about 250 workers but there may be a huge silver lining for another brand within the conglomerate and that could bring some enhanced customer experiences for shoppers at Old Navy.

As news reports revealed earlier this week the San Francisco retail leader is launching a new marketing and merchandise strategy, called Product 3.0, according to San Francisco Business Times, and while layoffs and store shuttering isn’t something to celebrate, a major refresh of product always bodes excitement.

According to published reports the focus is on offering consumers a more consistent product experience between the Gap, Banana Republic and Old Navy brands.

"For the past several years, the brand has lost its identity, relevance and resonance with the American public," Amanda Nicholson, associate dean and professor of retail practice at Syracuse University Whitman School of Management, told the publication. "There are a myriad of factors that make success in an over-stored marketplace like the U.S.A. very challenging, including an ever-growing menu of new and price-conscious brands to excite the public – from Top Shop to H&M to Zara to Target."

The 175 store closings is about one third of Gap’s 675 locations in North America and most will close by this year’s end, according to the New York Times.

“Our management team is aligned and focused on the key priorities that will drive profitable growth for the  company,” Art Peck, CEO, Gap Inc, said in a press announcement this week. “Building upon the strength of Old Navy, each brand within our portfolio is focused on clear, near-term priorities and a strategy to capitalize on long-term opportunities.”