Question: Gap Will Focus on Smaller-Scale Stores Gap has too many stores that are 12,500 square feet. The target store size is 6,000 square feet to 10,000 square feet, so Gap plans to combine previously separate concept stores. Some Gap body, adult, maternity, baby, and kids stores will be combined in one store.
Thinking of a Gap store as a production plant, explain why Gap is making a decision to reduce the size of its stores. Is Gap's decision a long-run decision or a short-run decision?