The January wave of store closure announcements continue, and Gap Inc. is the latest one to announce a slated shuttering.
On Friday, the retailer said it would cease operations of its smallest brand, Piperlime, closing the store’s single brick-and-mortar location in New York and ending its online operations.
Gap attributed the reason for the brand closure to its commitment to driving profitable top line sales, and said that going into the new fiscal year, it will focus on its five-brand portfolio including Gap, Old Navy, Banana Republic, Athleta and Intermix, and also its digital and global growth.
“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,” incoming CEO Art Peck said. “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.”
The company does not break out Piperlime sales independently, but the brand’s yearly revenue was below $100 million, representing less than 1 percent of its total $16 billion plus revenue base. “The wind-down costs associated with the decision are not material to the company’s financials,” a company statement noted.
Piperlime operations will end by the end of the first quarter of fiscal year 2015.
Gap will report January sales and plans to provide quarterly earnings guidance for fourth quarter 2014 on Feb. 9.