Hit by difficult times, Iconic American retailer Gap Inc plans to close more than 225 Gap and Banana Republic stores globally this year. As of 1 August, Gap Inc. had a total of 3,814 stores across 42 countries including 1,643 stores of Gap and Banana Republic alone.

The company has many brands in its kitty like Old Navy, Athleta, Janie and Jake brands apart from Gap and Banana Republic.

This decision of closures underlines how the company has been struggling to keep profits up during the pandemic, especially in malls, as a majority of the stores located in malls are being closed for good. Total sales across major brands declined 18 per cent in the second quarter.

However, the saving grace has been the 95 per cent increase in online sales which has been able to offset some of the losses.

Gap and Banana Republic suffered the most with a 28 per cent and 52 per cent decline in sales, respectively, making the store closures inevitable. Athleta, on the other hand, has been a bright spot for the company with net sales rising 6 per cent and comparable sales up 19 per cent.

The exact locations and breakdown of closures is not yet known but the company intends to reveal that during a virtual investor meeting in October.