Old Navy Canada has confirmed the impending closure of two of its Toronto store locations. Both stores are set to close in January 2024, shoppers will no longer find Old Navy at the Toronto Eaton Centre and Markville Shopping Centre, changing up the retail scene in the Greater Toronto Area's (GTA) retail offerings, reported first by Global News.
This decision is part of a broader trend affecting retail giants across Canada. In recent years, several major retailers have shuttered their doors, including Best Buy, Bath & Body Works, Bentley Leathers, and Bose, with announcements dating back to December 2019. The closures reflect a challenging environment for brick-and-mortar stores, as they grapple with the evolving habits of consumers and the explosive growth of online shopping.
Old Navy's parent company, Gap Inc., has not been immune to these challenges. The brand has been undergoing a global restructuring plan, which includes closing nearly half of its locations over the next two years. This comes alongside reports of Gap Inc.'s financial performance, with net sales falling and comparable sales down from previous years.
The reasons behind these closures are multifaceted. Analysts point to a lack of understanding of customers' new habits and an underestimation of the rise of digital shopping. Additionally, Nordstrom's nationwide closure of all 13 stores highlights issues such as the shift to online shopping, inflation, and financial losses. Retail shops also face increasing operating costs and challenges in management.
Old Navy's statement regarding the closures emphasized the company's ongoing evaluation of its real estate portfolio to ensure a "healthy fleet of stores" that can deliver the best possible customer experience. While the closures represent a scaling back of physical presence, Old Navy reassures that other store locations in Toronto, Vaughan, Richmond Hill, and Scarborough will remain operational
