Are Gap Inc’s Stores Operating Efficiently?

-26.81%
Downside
24.69
Market
18.07
Trefis
GPS: Gap logo
GPS
Gap

  • Net Store Operating costs per unit square feet for Gap Inc is significantly lower than its counterparts Abercrombie & Fitch and American Eagle Outfitters, implying more efficient operations
  • Moreover, the running costs per unit square feet have declined in the last three years and they’re expected to follow a similar trend over the next couple of years with the planned closure of high cost stores
  • Lease payments per unit square feet, however, have remained stable
  • Overall, Gap Inc is expected to spend around $94 per square feet to run its stores this year as opposed to $96 in 2013

correct version of gap operating costs

Have more questions about Gap Inc? See the links below:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Gap Inc
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