US retail company Gap said it was closing all of its Old Navy stores in Japan as part of a global reduction of outlets to save costs.
The decision came after Gap reported a 47 per cent drop in first-quarter profits, with revenue falling almost 6 per cent.
The struggling retailer has for years been suffering from increasing competition from companies like H&M, Zara and Forever 21.
The firm plans to focus Old Navy on the US market as well as China and Mexico.
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