The apparel giant at 801 Market St., which has been cutting costs through layoffs and several store closings at Old Navy, Banana Republic, Athleta and name-label brands. The existing store will close on July 1, he said.
The store opened in 1999. According to Gap, when the lease expires, it is “already working to identify new locations in downtown San Francisco that will best meet the needs of the business and our customers.”
“Old Navy is constantly evaluating its real estate portfolio to ensure a healthy store fleet to provide our customers with the best experience possible,” the company said. “Gap Inc. has deep roots in San Francisco and is committed to the city.”
A little later, one Banana Republic in Westfield Mall closed in April, and the original Banana Republic is moving to a smaller location in Union Square. Three other Gap stores and an Athleta store in San Francisco were closed during the outbreak.
The gap has seen sales decline, down 6 percent in the most recent fiscal year compared to last year. Executives cited supply chain disruptions in the second half of the year for higher inventory, particularly at Old Navy, as more promotions were rolled out to boost sales, leading to worse margins. Consumer demand has weakened during periods of high inflation.
Downtown San Francisco has fallen victim to weak foot traffic due to remote work and low tourism during the pandemic, due to safety concerns and customers switching to online shopping.
The shopping street near Union Square has been hit hard by retail closings: Nordstrom and Nordstrom Rack are leaving, along with Saks Off Fifth. The Walgreens next door to Old Navy was the scene of a fatal shooting, and relatives of victim Banco Brown have sued the company and its security firm.
Gap said it has opened four stores at its headquarters on the Embarcadero where customers can browse new products.
Gap is laying off about 1,800 corporate employees in a cost-cutting plan.
Contact Roland Li: firstname.lastname@example.org; Twitter: @rolandlisf
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.