Raise Minimum Wage? How President Obama Ran 'The Gap' Out of Business
It's remarkable how many warning signs and red flags are being raised about raising the minimum wage. Last year, The Gap did it on their own, drawing praise from President Obama...
"I applaud Gap Inc. for announcing that they intend to raise wages for their employees beginning this year – a decision that will benefit about 65,000 workers in the U.S.," Obama said in a statement.
Glenn Murphy, the chairman and CEO of Gap, says the chain will raise wages to $9 per hour in 2014 and $10 per hour in 2015. "After many months of consideration, we've made a business decision that's right for our brands, good for our people and beneficial to our customers."
Well, guess what? It's a little over a year later and 25% of their people are going to be unemployed...
Faced with rapidly declining sales at its flagship store brand, the San Francisco apparel maker, which also owns Old Navy and Banana Republic, said Monday that it will close about 25 percent of Gap stores — 175 of them — in North America over the next few years. The company also said it will eliminate about 250 positions in San Francisco and New York relating to the Gap store brand. A Gap spokeswoman declined to disclose the number of employees to be laid off in San Francisco.
There are a number of factors. It would appear The Gap didn't adjust well to the fact that more and more people would really shop online than have to deal with their obnoxious employees. As a larger man myself, I know that I feel less shame in clicking the "XXL" and adding it to my digital cart when compared to the sneers of the skinny-fat, androgynous clerk at my local outfitter. Still, less than a year and a half after increasing their operating costs drastically just to appease the leftist #RaiseTheWage cult... I don't know how they expected this to end. It was entirely predictable, scratch that, predicted.
And that was only raising in by $1 and hour. Imagine if people have to raise it by $6.