This iconic clothing chain is closing its stores from June 23
The COVID pandemic has forced several businesses to completely shed their retail space in 2020, and many other retailers have only been able to stay afloat by significantly reducing their store footprint. While the situation has improved in many ways since then, businesses are now grappling with the brunt of inflation, which is currently the highest in the United States for more than 40 years.
Major retailers like Walmart and Target have already warned shoppers that rising inflation could have a serious impact, and many companies are doing what they can to avoid major losses down the line. One retailer is already planning to close stores this month as part of a wider initiative to adjust to current market conditions. Read on to find out which popular clothing chain is closing in June.
READ NEXT: This popular chain is closing stores starting today.
Apparel companies have taken a hit in recent years. In March, H&M announced that it planned to close at least 240 stores this year. At the time, it was reported that the company’s global sales were down 11% from two years ago just before the pandemic hit, with H&M warning that it had been heavily affected by the spread of Omicron and extensive restrictions in some countries.
And just this month, Chico’s revealed that it will be closing a total of 40 stores this year, both for its namesake stores and White House Black Market (WHBM), which was acquired by Chico’s in 2003. An analysis of Market Screen said the closing stores are primarily “underperforming mall-based Chico’s and WHBM boutiques.”
Unfortunately, these are not the only closures that could affect you.
Based on local reports, it looks like Banana Republic is preparing to shut down at least two sites this month. The retailer’s store at Commons at North Park in Midland, Texas is one of the planned closures, the Midland Reporter-Telegram reported June 13. According to the newspaper, a sign outside the store says its last day of business will be June 23.
Banana Republic’s other closure is located at the CF Polo Park mall in Winnipeg, Canada, on Winnipeg Free Press reported June 14. The newspaper did not give an exact date for this closure, but confirmed it would occur later this month.
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These likely aren’t the only Republican Banana shutdowns that will occur in the coming months. In October 2020, Gap, Inc., which has owned the Banana Republic company since 1983, announced that it planned to close approximately 350 Gap and Banana Republic stores in North America by the end of 2023. This news came after that the company had previously confirmed plans to close more than 225 Gap and Banana Republic stores in 2020, Business Insider reported at the time.
According to the outlet, there were a total of 1,216 Gap and Banana Republic locations in the United States and Canada in 2019. But by the end of 2023, there are expected to remain 870 stores. As of June 15, at least 103 Banana Republic stores have been closed since the start of 2020, according to data from Gap.
The two Banana Republic stores, which will soon be closing in Midland and Winnipeg, are located in malls. In 2020, Gap confirmed that plans to close hundreds of its stores were part of an overall move to move away from malls. “Thanks to this work, our exposure in shopping centers will decrease significantly”, Katrina O’ConnellGap’s chief financial officer, said in a 2020 meeting, per Business Insider.
A Gap spokesperson told the Winnipeg Free Press that its closure was part of the company’s work to increase online demand and overhaul its real estate footprint. “We remain committed to making appropriate and timely decisions on stores that do not align with our vision for the future of Gap Inc,” they told the newspaper. By the end of 2023, Gap says its goal is to have a “smaller, healthier store fleet.”
READ NEXT: This iconic retailer is closing more than 70 locations, starting now.