Blog: Gap leaves Towne
Leonie Barrie | 27 February 2007
Perhaps it was overly ambitious of Gap Inc to embark on the expansion trail amidst problems with its existing core brands, and today the retail group has had to admit that its new Forth & Towne concept wasn’t such a good idea after all. In a news release announcing the shut-down, Gap said a thorough analysis revealed the concept was not demonstrating enough potential to deliver an acceptable long-term return on investment – and that it will lose $40m in expenses related to the closures. But it’s a shame the company couldn’t have worked this out just 18 months ago when it was evaluating the new concept. I wonder what will now happen to Gap’s online shoe store Piperlime, which was launched in October?
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