Gap will focus on smaller scale stores Gap has too many 12,500 square feet stores. The target store size is 6,000 to 10,000 square feet, so Gap plans to combine previously separate stores. Some Gap Body, Gap Adult, and Gap Kids stores will be combined in one store.
Thinking of a Gap store as a production plant, explain why Gap is reducing the size of its stores. Is Gap making a long-run decision or a short-run decision? Is Gap taking advantage of economies of scale?