Gap plans to open stores in South America

Tuesday, 25 October 2011 01:46 - - {{hitsCtrl.values.hits}}

Reuters: Retail clothing store Gap Inc will open its first stores in South America this month as it looks to expand its international footprint.

The company will open a store in Chile’s capital Santiago this month and another in the city of Concepcion in November, Gap said in a statement. It will also open Gap and Banana Republic stores in Panama and Colombia next year.

Stores in these countries will sell products under the Gap, GapKids, babyGap and Banana Republic brands. “These brands and their aesthetics are a good match for our target customers in Chile, Panama, and Colombia,” said Managing Director of Strategic Alliances for Gap Stefan Laban.

“We have no plans to bring Old Navy to the region at this time, but...we’ll evaluate future opportunities as we go forward and see how things progress,” he added.

Last year, the company started selling its products in Chile, Panama and Colombia through its international online store.

Gap has expanded its franchise store base across almost 30 countries over the past five years.

“While most of our business is currently in the United States, we are focused on capitalising on the $1.4 trillion apparel market and the significant opportunity ahead,” Laban said.

The company also plans to continue to expand in China and introduce Old Navy stores in Japan, as well as set up dedicated e-commerce site for the country next year, he added.

Gap plans to open franchise outlets in about 10 new countries in its current fiscal year and expects to double its franchise stores to 400 by fiscal year 2014.