Strategy

San Francisco — Gap Inc. on Monday lowered the boom on its biggest and most troubled division, announcing it would close 175 of its 675 namesake stores in North America over the next few years, with 140 of the closures occurring in the current fiscal year. In line with the closings, the brand’s headquarters workforce will be reduced by about 250 roles this year.

The closings will not impact Gap Outlet and Gap Factory Stores. Gap will also close a limited number of European locations, but it did not give a specific store count.

HARRISBURG, Pa. — Extreme-value retailer Ollie’s Bargain Outlet Holdings on Monday filed for an initial public offering. With a tagline of "good stuff cheap,”  Ollie’s operates 181 stores in the Eastern United States, expects to open 25 to 30 stores in fiscal 2015 and sees the potential for more than 950 locations across the country. (For more on Ollie’s, click here.) 

Hoffman Estates, Ill. – Kmart is shaking up its marketing operation with moves including the recent appointment of former DSW Chief Marketing Officer Kelly N. Cook as its chief marketing officer. There was never a formal announcement, but Cook’s LinkedIn profile indicates that she joined Kmart in that position in April.

Target chairman and CEO Brian Cornell commented on the chain’s new partnership with CVS Health in a Q&A on Target’s blog, A Bullseye View. Here are some excerpts: 

San Antonio, Texas — CST Brands Inc., through its CrossAmerica Partners LP wholly-owned subsidiary, has acquired the Charleston, West Virginia-based One Stop convenience store network. CST is also moving 29 recently constructed stores into its wholly-owned CrossAmerica partnership via two “dropdown” transactions.

Philadelphia — The Pep Boys: Manny, Moe & Jack named Hertz Corp. veteran Scott P. Sider, 54, as its new CEO, effective June 15. He most recently served as group president of Hertz Corporation’s largest division, Rent A Car Americas, with over 3,200 locations.

The announcement comes more than eight months after Pep Boys CEO Michael Odell resigned on the heels of disappointing second quarter earnings.

Toronto, Canada —Hudson’s Bay Company (HBC) is positioning itself for major global expansion with the purchase of the 15-year-old Galeria Kaufhof department store chain from German retail conglomerate Metro Group for about $3.17 billion. The planned purchase includes 103 Galeria Kaufof stores in Germany, as well as 16 German Sportarena stores and 16 Galeria Inno department stores in Belgium.

Toronto, Canada — Hudson’s Bay Company (HBC) is positioning itself for major global expansion with the purchase of the 15-year-old Galeria Kaufhof department store chain from German retail conglomerate Metro Group for about $3.17 billion. The planned purchase includes 103 Galeria Kaufof stores in Germany, as well as 16 German Sportarena stores and 16 Galeria Inno department stores in Belgium.

Toano, Va. – The executive shakeup continues at Lumber Liquidators as the company integrates the leadership of its merchandising and marketing departments. Marco Q. Pescara, the company's chief marketing officer since 2006, has been promoted to serve as chief merchandising and marketing officer effective June 19.

Pescara will lead the company's marketing and merchandising functions. The employment of William K. Schlegel, current chief merchandising officer, will be terminated effective June 19.

Hangzhou, China — Alibaba Group Holding Ltd. will reportedly launch a paid streaming video service in China in August 2015. According to Reuters, the service will be called Tmall Box Office (TBO) and offer both originally developed content and content from third-party providers.