The three-level Gap store on Fifth Avenue is closed in New York City next month – and may follow more retail locations.
A spokesman for CNBC said the site would be officially closed on January 20. Gap declined to give details on why the store was closed.
While the retail space in New York City is very expensive, the area where this gap is located – Fifth Avenue between 49th and 59th streets in downtown Manhattan – saw rents fall by 24 per cent this fall, according to the New York Real Estate Board, which added The average rent at that location is $ 2,973 per square foot.
Unfortunately, the location of Fifth Avenue may not be the only shopfront brick and mortar. The company recently announced that it would "close" hundreds of other sites "aggressively" to focus on high performance stores. In fact, Gap President and CEO Art Peck recently said that the biggest challenge to the brand is the old elements, such as real estate commitments. Although the company has a lucrative trade outlets, with nearly 500 stores around the world, the rest includes the business of specialty stores, which are currently poorly performing.
Last month, Gap Inc reported better-than-expected third-quarter earnings per share of $ 0.69 and $ 4.1 billion, compared with analyst estimates of $ 0.68 and $ 4 billion. But when it comes to sales, the Gap Global brand saw 7% of sales compared to 1% last year.
By contrast, Old Nive Global achieved a steady growth of 4 per cent and Banana Republic Global achieved a positive growth of 2 per cent compared with the negative 1 per cent last year.
Addressing Gap's global results, Beck said: "While Gap's performance this quarter was not entirely surprising, we are clearly disappointed and need to improve performance."