NEW YORK (CBSLA.com/AP) — Gap Inc. says it will shift its focus to its growing brands Old Navy and Athleta, and away from the Gap and Banana Republic.
The company said Wednesday that it will close about 200 Gap and Banana Republic stores in the next three years and open about 270 Old Navy and Athleta stores during the same period.READ MORE: 3-Alarm Blaze Rips Through Abandoned Covina School
Low-priced Old Navy has been a bright spot for the clothing retailer, posting rising sales even as they fell at the Gap and Banana Republic.
The move is projected to save about $500 million over that time period as a result of the closures.READ MORE: Protests Continue Outside Sigma Nu House On USC's Fraternity Row As New Sexual Assault Allegations Emerge
“We will leverage our iconic brands and significant scale to deliver growth by shifting to where our customers are shopping—online, value and active,” Gap Chief Executive Art Peck said.
The San Francisco company says Old Navy is on track to surpass $10 billion in sales in the next few years. And Athleta, which sells athletic clothing, is expected to exceed $1 billion in sales.
Shares of Gap rose nearly 5 percent to $25.18 in morning trading.MORE NEWS: Lawmaker Calls For Change On California Film Sets After Prop-Gun Shooting Death Of Halyna Hutchins By Alec Baldwin
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