Gap Turns to Texas Market to Test Store Reopening Strategy

(Bloomberg) -- Gap Inc. will use Texas as an initial proving ground for reopening as the retailer emerges from an almost two-month shutdown of physical stores prompted by the coronavirus outbreak.

The company will reopen a small number of locations with reduced hours this weekend in the state, Gap said Wednesday in a statement. It plans to turn the lights back on at 800 of its stores nationwide, including the Old Navy and Banana Republic brands, by the end of this month.

Gap joins a handful of big-name retailers taking their first tentative steps out of quarantine after the global pandemic led to mass retail shutdowns and a virtual halt to major portions of the economy. Abercrombie & Fitch Co. said on Wednesday it has begun reopening stores in areas where regulations allow.

Texas, specifically, has been a popular place for retailers to resume operations after Gov. Greg Abbott allowed businesses to begin reopening this month, even as many other states keep restrictions in place. Some J.C. Penney Co., Macy's Inc. and Dillard's Inc. brick-and-mortar locations are also operating in the state again.

Gap workers will wear face masks, registers will have Plexiglass partitions and signs throughout the store will remind everyone to follow social distancing measures. The retailer is also making curbside pickup available at 75 locations.

Adapting Operations

New Chief Executive Officer Sonia Syngal, the former head of Old Navy who took the reins at Gap in March, said the company has tried to adapt as the crisis unfolded. Stores were used as distribution hubs, while its online business was stress-tested. The company also said it's learning from its operations in Asia, where all locations reopened.

“We believe we'll be well-positioned as this crisis subsides,” Syngal said in the statement.

Even before the pandemic, Gap had its share of challenges. Sales have been falling. Former CEO Art Peck was fired after the retailer's turnaround plan struggled to take hold. In the past few weeks, a Business of Fashion report said Gap had asked suppliers to stop shipping summer product not intended for online sales and to stop all production for fall items.