Gap plans bold Asian expansion | IR News

Gap plans bold Asian expansion

Posted Date: 17/10/2011

By George Bond

International fashion retailer Gap is planning major expansion in Asia.

During the next 12 months, the Gap brand will expand rapidly in China and Hong Kong, with up to 45 stores to open by the end of 2012.

The fashion retailer will also take its value brand Old Navy into Japan within the next 18 months.

Its sports fashion brand Athleta will establish 50 stores by the end of 2013. Banana Republic and Gap flagships are set to open in Hong Kong and France later this year.

Gap's massive expansion outside US comes in conjunction with the goal of trimming down its US overall retail space from 2007 to 2013.

“The combination of our global strategy and formidable growth platform puts us in a strong position to expand our reach into the top 10 apparel markets worldwide,” said Glenn Murphy, chairman and CEO of Gap.

“In North America, we’re taking a number of steps to improve sales in the near-term, and I’m confident that with a strong management team in place, we’re well positioned for sustained growth across the business,” he added.

Gap said that the company is experimenting new marketing and merchandising ideas to excite shoppers. The company is collaborating with designers which include Diane von Furstenberg for Gap Kids.

The company is focusing on promoting its other brands and hopes to yield a revenue growth on its estimated $15 billion revenue base.

“Our brand leaders and their merchants are intent on delivering consistently great product for our target customers,” Murphy said.

GB

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