Gap is Leaving Fifth Avenue in New York

Gap patrons have just a few more weeks to shop at the company’s huge store on Fifth Avenue in New York as the doors will shut on January 20th.

The retailer is preparing to move out of the store as it considers closing hundreds of locations “aggressively” so it can focus on higher-performing stores.

The Fifth Avenue location, at 680 Fifth Ave., has three levels.

A spokeswoman for the company told CNBC about the closing but did not comment on why the company was closing that location.

It was in November that CEO Art Peck said on a call with investors that sales at Gap stores have fallen 7 percent over the last 12 months, while other brands like Old Navy and Banana Republic have seen a boost, forcing the company to “address” the issue.

There are hundreds of other stores that likely don’t fit our vision for the future of Gap brand specialty store, whether in terms of profitability, customer experience, traffic trends,” Peck said.

“I plan to exit those that do not fit the future vision quickly. I’m going to move thoughtfully but aggressively,” he added.

Bob Phibbs, CEO of New York-based consultancy firm the Retail Doctor, remarked to FOX Business, “With such heavy foot traffic in New York City, if Gap was going to make it anywhere, they should have been able to make it here. Now, Gap is cutting off limbs in hopes of survival.”

“The reality is that the retailer simply can’t keep running 40 percent off sales and expect to be a national brand that people go out of their way for,” he added.

“Without that understanding of its shoppers, the brand can’t expect to be around for much longer.”

Disclaimer: We have no position in Gap Inc. (NYSE: GPS) and have not been compensated for this article.