Gap, the renowned American multinational fashion retailer, has made a significant strategic move by shuttering all its retail operations in Spain, including both full-price stores and outlet locations, as well as its online channels. This decision extends across the entire Iberian Peninsula, as the company has also ceased operations in Portugal.
The announcement came without an official press release or press conference but was instead communicated through two brief messages on social media: one on February 2 stating “We will say goodbye soon,” followed by another on February 15 reading “It’s goodbye. For now.” The latter message also appeared on Gap’s official website.
This announcement has raised more questions than answers, with all eyes now turning to March 7, when Richard Dickson, Gap’s CEO since August 22, will unveil the financial results for the fourth quarter and full fiscal year of 2023.
It is anticipated that on this day, a new roadmap and strategic plan for Gap will be presented, especially since Dickson has brought on board renowned figures from the industry to revitalize the brand. One such example is the acclaimed New York designer Zac Posen, who has been serving as the Executive Vice President of the Gap Group and the Creative Director of both the Gap Group and Old Navy since the beginning of the month.
While Gap’s revenue in Spain reached €5.9 million in 2022, up from €2.1 million in 2021, its losses also increased. In 2021, losses amounted to €887,341, rising to €1.3 million in 2022.
Thus far, Gap has remained silent, and since February 15, all physical stores and the official online store in Spain have ceased operations. Nevertheless, the American multinational will continue to operate through sales on specialized online marketplaces and multi-brand stores, such as El Corte Inglés shopping centers.
Customer Recommendations
On its website, Gap provides recommendations to customers with pending returns from its online store. They explain, “To ensure the transit of orders and returns, the 30-day deadline will be maintained, accepting returns of orders until March 18, 2024. As our logistics center is closing, returns must arrive by March 20, 2024, for processing.”
To initiate a return, Gap’s Spanish customers must send an email with the order number and the reference and quantities of the products they wish to return. The company will then arrange for the collection.
Gap’s Nine-Year Journey in Spain
Gap made its debut in the Spanish market in January 2015 when it signed an agreement with travel retail operator Dufry to establish a presence in the country’s airports and inaugurate its first store at Málaga-Costa del Sol Airport. In March of the same year, the company signed a franchise agreement with El Corte Inglés department stores. After opening its first location in Barcelona, El Corte Inglés introduced Gap to other centers.
In 2020, Gap entered into a franchise agreement with the Catalan company Grup Galcerán, a franchising partner in Spain for other major multinational brands in the sector, such as Levi’s, Dockers, and Under Armour, to expand its network of street-level retail stores.
Opting for this business model, Gap chose not to directly enter the Spanish market due to the intense competition within the fashion sector, with both local companies like Inditex, Mango, and Tendam, and international giants such as H&M and C&A.
