Now playing
03:13
You can thank this man for expensive yoga pants
Now playing
00:54
See Nike's new 'hands-free' shoe
One of many large boxes of returned products that fill the warehouse. The returned products in this box will eventually be sorted and categorized.
PHOTO: John General/CNN
One of many large boxes of returned products that fill the warehouse. The returned products in this box will eventually be sorted and categorized.
Now playing
05:08
Here's where your 'free' online returns actually end up
PHOTO: Shutterstock
Now playing
04:42
Ever receive a package you didn't order? It could be a scam
PHOTO: Orangetheory Fitness
Now playing
02:13
This gym is actually opening studios during the pandemic
Now playing
02:24
How holiday spirit is surging despite the Covid-19 pandemic
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy
PHOTO: Eugene Gologursky/Getty Images North America/Getty Images for Macy's
NEW YORK, NEW YORK - NOVEMBER 19: A view of the window display as Macy's Herald Square unveils Give, Love, Believe 2020 Holiday Windows on November 19, 2020 in New York City. (Photo by Eugene Gologursky/Getty Images for Macy's)
Now playing
00:56
Macy's unveils holiday window display with gratitude theme
PHOTO: CNN/Target/Design by John General
Now playing
02:36
It's official: Black Friday is irrelevant
Now playing
02:23
Party City CEO: Consumers still want to celebrate together
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic
As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
PHOTO: Braulio Jatar/SOPA Images/LightRocket/Getty Images
NEW YORK, UNITED STATES - 2020/07/08: People wearing face masks shopping inside a retail store in Manhattan as the city enters phase 3 of reopening amid the coronavirus pandemic As New York City enters phase 3 of reopening retail stores for indoor shopping, restaurants have been postponed for indoor dinning. The U.S. Department of Health recorded a total of 3,219,999 infections, 135,822 death and 1,426,428 recovered since the beginning of the outbreak. (Photo by Braulio Jatar/SOPA Images/LightRocket via Getty Images)
Now playing
01:38
US retail sales improved in September
PHOTO: thehouseofdrew.com
Now playing
02:01
Justin Bieber's footwear collaboration overwhelms site
PHOTO: Walmart
Now playing
01:01
See what's new inside Walmart stores
WHEATON, MARYLAND - APRIL 16: Customers wear face masks to prevent the spread of the novel coronavirus as they line up to enter a Costco Wholesale store April 16, 2020 in Wheaton, Maryland. Maryland Governor Larry Hogan ordered that all people must wear some kind of face mask to protect themselves and others from COVID-19 when on public transportation, grocery stores, retail establishments and other places where social distancing is not always possible. (Photo by Chip Somodevilla/Getty Images)
PHOTO: Chip Somodevilla/Getty Images
WHEATON, MARYLAND - APRIL 16: Customers wear face masks to prevent the spread of the novel coronavirus as they line up to enter a Costco Wholesale store April 16, 2020 in Wheaton, Maryland. Maryland Governor Larry Hogan ordered that all people must wear some kind of face mask to protect themselves and others from COVID-19 when on public transportation, grocery stores, retail establishments and other places where social distancing is not always possible. (Photo by Chip Somodevilla/Getty Images)
Now playing
02:32
How masks are reshaping the face of the retail economy
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
PHOTO: Maddie McGarvey for CNN
3119 E Third Street Dollar General in Dayton, OH on March 12, 2020.
Now playing
06:07
Dollar General's business is booming. It's also vulnerable to crime, police say
Now playing
03:01
How private equity is gutting retail
Now playing
01:55
All retail bankruptcies are not the same. Here's what you need to know
(CNN Business) —  

The Gap is closing its Fifth Avenue store in New York as part of a plan to rebound from slowing sales.

The location will close on January 20, the company confirmed. The New York Post first reported Gap’s plans.

The closure on New York’s tony Fifth Avenue is another sign of Gap’s woes.

The Gap was the coolest brand in retail two decades ago. It rode the mall boom in the back-half of the 20th century and won over everyone from teens to moms to celebrities like Sharon Stone.

But the Gap (GPS) has struggled in recent years, yet at the beginning of November still had more than 1,000 stores around the world and nearly 800 stores in North America.

Gap CEO Art Peck acknowledged in November that its current store count was unprofitable, and he sketched out plans to quickly close hundreds of them.

Closing stores, which he called “overdue,” could save Gap up to $100 million in profit and strengthen healthier stores.

“We have had a lot of stores that are in the bottom half of the fleet that have continued to deteriorate over time,” Peck told analysts. “It’s my strong belief that we’ve kicked the can down the road on this and offered a deteriorating customer experience, and it does have a negative effect on the health of the brand.”

The brand built its status on selling logoed sweatshirts, turtlenecks, and fashion basics for premium prices, but that model is under threat with more choices in the market than ever before. Gap has been undercut by fast-fashion sellers and missed out on the athleisure boom.

In its latest quarter, Gap’s sales slid 7% compared to a year ago. Gap also owns Old Navy, Banana Republic, and Athleta, which are in stronger shape.

Sales at Old Navy, Gap’s largest brand, grew 4% last quarter. Old Navy is building new stores and will reach $10 billion in sales in the coming years. Gap’s women’s athleisure chain Athleta is expanding too, and the company expects it to hit $1 billion in sales. Earlier this year, Gap introduced an athleisure brand for men called Hill City.

Retailers have closed more than 5,400 stores in the United States this year, according to retail think tank Coresight Research. Toys “R” Us closed 881 stores during its liquidation, Sears and KMart has shut 472, and Mattress Firm has shut 388. Mattress Firm filed for bankruptcy in October.

But closures slowed down this year from a record pace in 2017. Retailers closed around 7,000 stores last year.

Dollar and discount stores are opening thousands of stores as consumers look for bargains. Dollar General has opened 900 this year, according to Coresight. Dollar General (DG) believes it can open up to 13,000 more around the country. Five Below (FIVE), which sells most of its stuff to kids for under $5, has opened 200 stores.