Fraser Valley – The parent company of clothing retailer Gap, says it will close 230 of its Canadian stores.
This is part of a global plan to shutter almost half of the brand’s locations over the next two years.
Gap, like many retailers, are fighting on line competition and the move for many shoppers to avoid malls and head to smaller brick and mortar stores. Although that has its financial drawbacks as well.
The company is projecting a loss of $635M, however this move has the potential of bringing in $90M in pre-tax savings.
The retailer would not comment to Canadian Press of exact closures including Valley locations in Abbotsford, Langley and Surrey.
The company also announced plans to split its brands into two publicly traded companies with Old Navy falling into one business and Gap, Banana Republic, Athleta, Intermix and Hill City making up another.
