Gap to Cut Down Full-Price Stores, Expand in Outlets

Gap continues to tweak its operating model in the hope of reversing the trend that put it on a downward spiral in the mid-2000s. During a call with analysts yesterday, company CEO Glenn Murphy revealed Gap plans to close 200 stores by 2013, putting the company's total store count in the U.S. at 700. In 2007, the Gap operated 1,150 stores nationwide. At the same time, Gap plans to step up expansion in the outlet center space for both its Gap and Banana Republic divisions.