Old Navy will close its downtown SF store after decades

The apparel giant, which has cut costs with layoffs and numerous store closures at its Old Navy, Banana Republic, Athleta and namesake brands, said the 801 Market St. store will close July 1.

The store opened in 1999. Gap said the lease is coming to an end and it is “already working to identify new locations in downtown San Francisco that will better meet the needs of the business and our customers. clients”.

“Old Navy is always evaluating its real estate portfolio to ensure a healthy fleet of stores that can provide the best possible experience for our customers,” the company said. “Gap Inc. has deep roots in San Francisco and is committed to the city.”

A block away, a Banana Republic closed inside Westfield Mall in April, and a Banana Republic flagship is moving to Union Square in a smaller space. Three other Gap stores and an Athleta store have closed in San Francisco during the pandemic.

Gap saw sales falter, down 6% in its latest fiscal year from a year earlier. Executives cited supply chain disruptions for high inventory in the second half of the year, particularly at Old Navy, causing profit margins to deteriorate as more promotions were issued to boost sales. Customer demand also weakened during a period of high inflation.

Downtown San Francisco has been plagued by lower foot traffic due to remote working and declining tourism during the pandemic, as well as security concerns and customers shifting to online shopping.

The stretch of Market Street near Union Square has been hit hard by store closures: Nordstrom and Nordstrom Rack are coming out, along with Saks Off Fifth. A Walgreens next to Old Navy was the scene of a fatal shooting and relatives of the victim, Banko Brown, sued the business and its security company.

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