Gap to use Texas as test market for reopenings
Gap Inc., the mall stalwart that owns its namesake brand, Old Navy, Banana Republic and Athleta, said it plans to reopen up to 800 stores in North America by the end of the month as retailers clamor to return to business.
The company will use Texas as an initial proving ground for reopening as the retailer emerges from an almost two-month shutdown of physical stores prompted by the coronavirus pandemic.
The company will reopen a small number of locations with reduced hours this weekend in the state, Gap said Wednesday in a statement.
“Our goal is to be responsibly aggressive,” Sonia Syngal, chief executive of Gap, said Tuesday. “Every retailer will have its own opening strategy, but suffice it to say we are looking to open where we’re legally allowed to open as soon as we can.”
Gap joins a handful of big-name retailers taking their first tentative steps out of quarantine after the global pandemic led to mass retail shutdowns and a virtual halt to major portions of the economy.
Abercrombie & Fitch Co. said Wednesday that it has begun reopening stores in areas where regulations allow.
Texas, specifically, has been a popular place for retailers to resume operations after Gov. Greg Abbott allowed businesses to begin reopening this month, even as many other states keep restrictions in place.
The plan follows similar strategies announced in recent weeks by Macy’s, owner of Bloomingdales and Bluemercury; and Simon Property Group, the biggest mall operator in the United States.
Some J.C. Penney Co., Macy’s Inc. and Dillard’s Inc. brick-andmortar locations also are operating in the state again.
Retailers that sell nonessential goods, especially clothing, have been eager to reopen, as their sales have plummeted, promising new safety protocols for the pandemic era, including plexiglass partitions, hand sanitizer stations and face masks for their employees.
Foot traffic to stores had been down even before the virus outbreak, and it remains to be seen how quickly shoppers will return to the newly refashioned environments while the country continues to grapple with a highly contagious virus.
Syngal emphasized that most of Gap’s revenue did not come from indoor malls, pointing to Old Navy locations at strip malls, its outlet business and online business.
Old Navy, in particular, was “very, very relevant for what people are wanting right now,” she added, with apparel for families and activewear available at offmall stores.
Gap declined to share the number of Texas locations that would welcome customers this weekend. The company said it anticipated 800 reopenings this month, based on changing decisions by state and local authorities and a patchwork of restrictions across the country.
The figure represents nearly one-third of Gap’s locations in North America, where it also owns Intermix and Janie and Jack.
While the company has built a robust online operation, its stores remain crucial. It has nearly 2,800 locations in North America, mostly in the United States.
The company recently said it had suspended rent payments for its North American retail stores in April, which comes out to about $115 million per month, and it has been negotiating lease terms.
It also said the pandemic “continues to negatively impact our operations and liquidity.”
In the meantime, Gap’s brands have introduced curbside pickup and shipping products from stores. The company, which furloughed nearly 80,000 store employees in North America, declined to say how many workers have been brought back or how many will return.
Syngal said Texas has made it especially easy for national retailers to reopen.
“Texas has aligned state-level and county-level requirements, and that’s made it easier for retailers to have a more consistent opening plan,” she said. “It’s a state-by-state and county-by-county decision, and large retailers like us have been advocating for more consistency at that level.”
She added: “It really does come down to what governors decide — our whole stance is that we will be ready to reopen as it is safe to do so as dictated by local authorities.”
At the chains operated by the Gap, fitting rooms and restrooms won’t be available when stores reopen. Returns will be quarantined for 24 hours.
The company will encourage, though not require, customers to wear face coverings while shopping, and monitor the flow of customers in stores while encouraging social distancing.
Syngal said the company expected shoppers generally would wear masks as authorities and businesses encouraged their use and that it has learned from its 250 locations in Asia, which have reopened.