Gap Inc. is closing its trendy athleticwear brand Hill City less than two years after it launched. The apparel retailer said in a blog post on Thursday that it made the decision to close Hill City in order to dedicate its resources to its larger brands — Gap, Banana Republic, and Old Navy. Hill City was launched to capitalize on the continued boom in athletic wear, outdoorsy clothing and, more recently, men taking more of an interest in shopping.
Total Retail's Take: This news comes as somewhat of a surprise given the strength of the product category. Athleisurewear sales continue to be strong in the U.S., boosted in recent months from people purchasing comfortable clothing as they spent extended periods of time sheltering in place at their homes. Furthermore, Gap is pulling the plug on Hill City after a relatively short period of time (less than two years). But the apparel retailer apparently didn't have time to wait for Hill City to turn its fortunes around and prove its worth in the company's portfolio of brands. Gap Inc. reported a 43 percent drop in net sales in the first quarter of 2020, and is moving on from Hill City to dedicate increasingly scarce resources to its more established brands.