Online sales might be the footwear industry’s bright spot, but not for Gap. The company announced Friday the decision to close its Piperlime brand, including the online platform and single store in New York, by the end of the first quarter of fiscal year 2015.
Piperlime, which launched in 2006 as an online-only footwear store selling brands like Steve Madden, Schutz and Vince, gradually expanded into apparel and accessories, and opened a brick-and-mortar in New York City in 2012. Most recently, the brand bowed Piperlime Collection, a range of women’s sportswear, in 2014. Still, the brand is by far the smallest of the company’s portfolio with yearly revenue below $100 million, or less than 1% of Gap Inc.’s total revenue base of over $16 billion.
The shutdown is part of Gap’s renewed commitment, directed by incoming CEO Art Peck, to drive profitable top line sales powered by the company’s roster of global brands. Going into the new fiscal year, the company will focus on its portfolio of five brands, including Gap, Old Navy, Banana Republic, Athleta and Intermix, as well as digital and global growth.
Peck said, “ We are incredibly grateful to our fashion-focused, loyal customers, and proud of our dedicated employees who have been working hard to evolve the brand and test out new ideas.” He added, “We plan to keep on pushing new ideas and look forward to seeing how we can apply what we’ve learned to the rest of the company as we continue to bring great products and shopping experiences to our customers.”