Gap working with vendors to manage product pipeline

"With 90 percent of our stores closed around the world and uncertainty about the length of time until they re-open, compounded by the impact that the COVID-19 virus will have on the overall economy and the likelihood of the virus returning in the Fall, we have made the very difficult decision to furlough the majority of our store employees and continue to monitor staffing levels at each of our fulfillment centres," a Gap spokesperson said in response to a Fibre2Fashion's email asking how does it plan to help its suppliers overcome the current crisis and bring out a win-win proposition for both.

"We are focused on reducing expenses while doing what is in the best interest of our employees, customers and partners, as well as the long-term health of our company. This work requires diligently managing our inventory, including identifying those products we can sell in the short-term, those we can store now to sell later, and those orders we need to cancel," the spokesperson said.

"We are taking the proactive and prudent actions needed to manage the business through this crisis to ensure that, on the other side of this pandemic, we can and will resume placing orders with our vendors, and partner with them to build a sustainable recovery for all of us and our workers. Throughout this journey, we are guided by our long-held values and commitments to the health and well-being of our teams and communities, including our vendors, the factory workers and other critical supply chain partners.

"We are actively working with our vendors – many of whom we have worked with for over 10, 20, even 30 years – to manage our product pipeline and right-size our inventory. These conversations are ongoing and reflect the realities of some government-mandated factory  closures due to COVID-19. Importantly, we have worked with our vendors to pause production for a few days, allowing us to recalibrate as we model potential future scenarios in order to come back to them with a more detailed action plan. In the meantime, we have shifted capacity in some factories toward making PPE and are prototyping to develop PPE supplies, including masks and gowns, using our excess materials," the spokesperson added.

Gap's goal is to "provide transparency and clarity to our supply chain partners as we work through these issues. And, of course, we look forward to the time that we can open our stores again and welcome back our employees and customers."

Fibre2Fashion News Desk (RKS)