The clothing giant, which has been cutting costs with layoffs and several store closures across its Old Navy, Banana Republic, Athleta and namesake brands, said the store at 801 Market St. It will close on July 1st.
The store opened in 1999. Japp said the lease would expire and that he was “already working on new locations in downtown San Francisco that would better serve the needs of the business and our customers.”
“Old Navy is always evaluating its portfolio of properties to ensure a healthy fleet of stores that can provide the best possible experience for our customers,” the company said. “Gap Inc. has deep roots in San Francisco and is committed to the city.”
Just a block away, Banana Republic inside Westfield Mall closed in April, and Union Square’s flagship Banana Republic is moving to a smaller space. Three other Gap stores and an Athleta store in San Francisco closed during the pandemic.
Gap has seen sales falter, falling 6% in its latest fiscal year compared to the previous year. Executives cited supply chain disruptions due to rising inventory in the second half of the year, particularly at Old Navy, which led to worse margins as more promotions were issued to boost sales. Customer demand also weakened during a period of high inflation.
Downtown San Francisco has been a victim of poor foot traffic due to remote work and reduced tourism during the pandemic, along with safety concerns and a shift in customers to online shopping.
The stretch of Market Street near Union Square has been hit hard by retail closures: Nordstrom and Nordstrom Rack are out, along with Saks of Fifth. A Walgreens next to Old Navy was the site of a fatal shooting, and relatives of the victim, Banko Brown, have sued the company and its security firm.
Gap said it has opened four stores at its Embarcadero headquarters where customers can browse new products.
Gap is laying off about 1,800 employees in the company as part of a cost-saving plan.
Reach Roland Li: [email protected]; Twitter: @rolandlisf
