The Gap announces that six Manhattan stores will close

Real Estate Weekly, April 18, 2001 by Parke Chapman

Another apparel chain is abridging their retail fleet.

In this case, The Gap will consolidate six of its thirty-five Manhattan stores over the next year while expanding certain locations. Stores in the two to three thousand SF range. will be closed, according to published reports.

Their flagship store on Fifth Avenue and 54th street is 36,000 SF. The Broadway and 34th Street store is even larger, with 57,000 SF. According to a report in Crains, the Gap on 36th street and Third Avenue will be closed first.

In the wake of Labels for Less filing for Chapter 11, this move can be interpreted several ways.

"The Gap is one of the keenest New York City retailers out there," said Ben Fox, executive vice president.

Fox hesitated to blame shaky market conditions for the string of closures, adding, "They've been planning on doing this for some time."

Despite the consolidation, the Gapplans to increase their total retail square footage in Manhattan by almost 20 percent.

"This might even be a smart move on the part of the Gap," said Robin Abrams, executive vice president of retail services at Lansco. Abrams cited the chain's rapid growth throughout Manhattan--growth that encompassed many smaller stores--as a potential error, especially now as, in her words, "survival of the fittest" rules the day for retailers.

Charles Aug, the man responsible for leasing out the Gap's first Manhattan store back in the early 1970's, attributed dysfunctional stores to the consolidation.

"They simply need more space in these stores as they are selling more items now. Some of these stores are outdated and just too small," said Aug, chairman of Garrick-Aug, the retail leasing firm.

In an apparel climate dominated by Swedish phenomenon H & M, the Gap might be assuming a defensive stance against the Euro apparel onslaught. As if the H & M factor wasn't enough, the Gap reported a 34 percent drop in profits from the fourth quarter of last year.