Steve Gartner on Last Week's Poll Question

GAP WILL…

In a bleak retail year that’s forced powerhouses such as Starbucks to close branches, the Gap, a company that managed to make plain tee shirts and khakis hip, announced its plans to close stores across the U.S. Few of our poll respondents seemed surprised by this, and, in fact, 59% predict that the company will close more stores than it previously announced. Distantly behind, 21% think Gap will find another real estate solution, and 19% think the company will face serious problems. Steve Gartner, president of Metro Commercial Real Estate, thinks the uproar is much ado about nothing. Here are his thoughts:

“There’s always a trend of retailers reinventing themselves. Even when they announce massive closings, often they’re opening stores at the same time. So I don’t find a store closing announcement by a retailer, especially one as large as the Gap or Starbucks, to be anything other than a healthy pruning. With retailers that have experienced a period of major growth, it’s no surprise when they take a breath and decide to close stores or slow expansion.