Telling financial news that the economy in the United States is still suffering:  GAP announced that it will close one-third of it's domestic stores by 2013 - while expanding globally.

Although it is shrinking its retail footprint in the U.S., the company announced it is expanding Gap and Banana Republic stores in China, Italy and South America. It is planning on tripling its Gap stores in greater China from roughly 15 at the end of this year to about 45 by the end of 2012, according to the press release.

Another one of its brands, Old Navy, will make its debut outside of the United States in 2014, with an outlet in Japan.

The move will shed jobs and bring the company back to an older business model.

According to Bloomberg News, the company said it plans to return operating margins to 2010 levels. Gap's operating income was 12.8 percent of its sales in its fiscal 2010, according to Bloomberg data. The measure narrowed to 9.9 percent in the quarter ended in July.

he company would not estimate the number of U.S. jobs that will be eliminated.

Bottom Line - Gap to shutter a third of US stores, expand globally.