Uncertainty ahead for Gap France
13/03/2023
In 2021, across several European countries, Gap Inc had set up partnerships with local retailers. It closed its stores in the UK and Ireland but formed an agreement with Next to manage online sales and concessions. In Italy, it had 11 retail locations that are now operated by OVS.
In France, the twenty odd Gap stores were taken over by Hermione People & Brands (HPB). This holding company had acquired several other retailers in the past few years (Camaieu and Go Sport, to name two) but had found it difficult to upgrade locations and attract consumers. Camaieu closed all its 511 doors last year, Go Sport is looking for a new owner, and Gap France was placed in receivership last week, along with the holding company HPB itself.
It is not expected that Gap Inc come in to save the 20 stores and 365 employees in France, but the tribunal has been able to reduce the liabilities due to the US group from €25.9 million to €5.9 million, as reported by French daily Le Monde.
Last week, Gap Inc, the owner of Old Navy, Gap, Banana Republic and Athleta reported its financial results for fiscal 2022. Net sales fell by 6% at $15.6 billion, and the group posted a net loss of $202 million for FY 2022.
Consumer attitudes seem to be shifting slightly back to brick-and-mortar. In the fourth quarter, Gap Inc’s online sales were down 10% compared to the same period last year but still represent 41% of total net sales.
Finally, fourth quarter FY 2022 revenues for the Gap were negatively impacted, by approximately 2%, by the shutdown of Yeezy Gap.
The group ended the year with 3,352 stores located in 40+ countries, of which it operates 2,685.
Image courtesy Gap Inc.
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