Monday, May 9, 2016

This Mall CEO Thinks Gap and Abercrombie Need to Close a Ton More Stores

A word of advice to execs at Gap and Abercrombie & Fitch -- you are still too big to be highly profitable, so keep closing stores.

That matter-of-fact guidance comes compliments of General Growth Properties CEO Sandeep Mathrani, who has been leading the operator of 131 mostly A-rated U.S. malls since it emerged from bankruptcy in 2011. "If you really ask me what the big issue is [in retail], it's that the country is over-retailed, and that is causing the most pain -- the reason why we are over-retailed is do you really need 800 Gap stores, I mean who needs 800 stores in the country," says Mathrani in an interview with TheStreet. When asked what the optimal size for a specialty retail concept should be, Mathrani adds, "If you ask me about H&M, my personal opinion is 500 to 600 stores, but if you ask me about an Abercrombie & Fitch, I would say about 250 to 300 stores.. . . more

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