Gap Had No Real Estate Strategy

How could this have happened?The largest apparel retailer in the US didn’t really plan where it was putting stores, according to Chairman and CEO Glenn Murphy. “We’ve never had a clear real estate strategy,” Murphy said. “We now have that information, and it will allow us to make quick decisions.” Now, after an analysis of its stores, management plans to cut square footage by between 10% and 15% over the next three to five years.Of course, for years industry observers have made disparaging remarks about Gap’s exuberant expansion. We find it overly candid and a bit strange that the retailer’s CEO would say something like this outright. But we like it. We wish more heads of business (and politicians) would be as forthcoming. That being said, Murphy has only been on the job for a year, so it might be an easy thing for him to say.Is this just the beginning for Gap’s newly found awareness of site selection, and will we be hearing more announcements about store closures?