Fashion retailer Gap is reviewing its warehouse and distribution model and company-owned e-commerce operations in Europe, which could result in the possible the closure of its EU distribution centre in Rugby. 

In a statement Mark Breitbard, Head of Gap Brand Global, said: “As we conduct the review, we will look at transferring elements of the business to interested third parties as part of a proposed partnership model expansion.

“Franchise partnerships are a strong and cost-effective way to amplify the brand. Through franchise, Gap brand reaches customers in 35 countries with more than 400 stores and 14 e-commerce sites.”

He said that with Gap’s “strong brand awareness” and a “large, active customer base”, it was focusing on “asset-light ways”.

“One of the options being explored is the possible closure of our company-operated Gap stores in the United Kingdom, France, Ireland and Italy at the end of the second quarter in 2021.

“In addition, we are reviewing our warehouse and distribution model and our Gap and Banana Republic company-owned e-commerce operations in Europe.  A possible outcome is the closure of our EU distribution centre in Rugby,” Breitbard said.