American clothing and accessories retailer Gap announced Thursday that it will shut down its stores in Israel in 2017 over considerable losses. According to the financial daily Globes, Gap's Israeli franchise holder Gottex Brands has lost 30 million shekels ($7.8 million) in operating costs. Gap arrived in Israel in late 2009. Opening its first stores in Tel Aviv and Jerusalem, the franchise soon expanded to seven stores nationwide, adding stores in Petach Tikva, Herzliya, Netanya, Raanana and Beit Shemesh. Gottex Brands announced it will make efforts to absorb Gap's employees in its other stores. Still, dozens of employees will have to be let go. Gap has been plagued by plummeting sales worldwide in the past years, finding it difficult to compete with megabrands Zara and H&M. In 2015 the company announced it was closing 175 of its 675 stores in North America.
Citing losses, US retailer Gap to shut down operations in Israel
Gap's Israeli franchise holder reportedly loses $7.8 million in operating costs • Brand's seven Israeli stores to close during 2017 • Franchise holder says it will try to absorb employees in other stores • Gap plagued by plummeting sales worldwide.
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