US fashion retailer Gap has made its London-based European design team redundant, affecting up to 80 jobs.

Gap, which launched its European design team in 2006 to give its styles more of a local flavour, made a u-turn as it seeks to improve merchandising and stock control to reduce Sale discounting.

A UK Gap spokeswoman told The Sunday Telegraph: “It is a very difficult economic climate. The recent North American ranges have been more fashion-forward and that’s something that European customers respond well to.”

It is understood that the success of Gap’s new head of design Patrick Robinson, a former designer for Paco Rabanne and Giorgio Armani, has given the retailer the confidence to rely on North American ranges.

Gap vice-president of corporate communications Bill Chandler said: “As the North American product has been accepted more widely in the past year and a half, it makes business sense and allows us to be more cost-effective while giving the styling that our customers desire.

“There will be a handful of designers in New York focused on making adjustments to our North American designs for our European customers.”

Gap’s first UK Banana Republic store is understood to be enjoying “tremendous” sales.