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Gap signals major withdrawal from malls across the U.S.

It will be focusing more on its online and off-mall stores.

Gap announced on Thursday that as part of a long-term restructuring plan, it will commence a significant withdrawal from malls in the U.S.

The retailer has said it will close another 350 stores across North America – 220 of them Gap stores, and 130 Banana Republic stores – over the next three years.

At the end of this restructuring, 80% of its remaining stores will be in off-mall locations.

While which stores will be closing haven't been announced yet, it spells trouble for its presence in Minnesota, which almost entirely in mall settings.

Here are Gap's stores in Minnesota:

  • Albertville Premium Outlets
  • Eden Prairie Center
  • Mall of America, Bloomington
  • Ridgedale Center, Minnetonka
  • Shoppes at Arbor Lakes, Maple Grove
  • Southdale Center, Edina
  • Twin Cities Premium Outlets, Eagan
  • Woodbury Lakes

And here are Banana Republic's locations in Minnesota:

  • IDS Center, Minneapolis
  • Mall of America, Bloomington
  • Rosedale Center, Roseville
  • Shoppes at Knollwood, St. Louis Park
  • Southdale Center, Edina
  • Twin Cities Premium Outlets, Eagan
  • Woodbury Lakes

While its Gap and Banana Republic brands are struggling, the company did say it would be adding more of its Old Navy and Athleta stores, which continue to boom.

Gap intends to open 30-40 new Old Navy stores in the next three years, with the long-term plan for Athleta to open another 100.

"We're shrinking North American specialty stores and getting out of mall-based locations," said Gap Global president Mark Breitbard on Thursday.

"What we're doing is restructuring the fleet, shifting and pushing more of the business to digital and growing (market) share in key categories."

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