Is franchising a new lifeline for Gap?
The American clothing chain plans to close 120 stores in Europe and 350 in the United States (with a total of 3,345 worldwide in February 2020). The European business is operating 70 stores in France, Italy, Ireland and Britain, representing a turnover of US$525 million (data as of February 2020). According to the Financial Times, the group is reliant on a franchise formula, which is less capital-intensive, to continue developing brands. Franchising currently represents 400 stores operating in 35 countries.