Franchisee Plans to Open a Dozen Gap and Banana Republic Stores in the Philippines by 2012
SAN FRANCISCO – Oct. 9, 2007 – Gap Inc. (NYSE: GPS) today announced a franchise agreement to introduce the Gap and Banana Republic brands to the Philippines. Over the next five years, Gap Inc.’s franchise partner – Rustan Group of Companies – plans to open a combined total of approximately eight Gap stores and four Banana Republic stores throughout the Philippines.
The first Gap store is expected to open by the end of this year, and the first Banana Republic stores by spring 2008. All stores are scheduled to be open by 2012.
“The Philippines represents a natural market for Gap Inc. to expand its international presence,” said Ron Young, senior vice president of international strategic alliances for Gap Inc. “The country has a strong, steadily growing economy, and consumers in this market have a great interest in iconic apparel brands such as ours.”
Gap Inc. will leverage the Rustan Group’s local operational expertise, and will provide access to Gap and Banana Republic’s clothing and accessories. In addition, the Rustan Group of Companies will hold exclusive rights to operate Gap and Banana Republic stores in the Philippines, will purchase merchandise from Gap Inc. or suppliers designated by Gap Inc., and must adhere to Gap Inc.’s quality standards to preserve the reputation of the Gap and Banana Republic brands.
“We’re pleased to have forged a relationship with such an excellent local partner,” continued Mr. Young. “In addition to strong operational expertise and a deep understanding of their local customer base, the Rustan Group of Companies has a track record of successfully introducing well-known fashion and apparel brands to international markets.”
Gap Inc. directly operates Gap brand stores in six countries and Banana Republic stores in three countries. Today’s announcement follows previously-announced franchise agreements to open Gap and Banana Republic stores in Bahrain, Indonesia, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, South Korea, Turkey and the United Arab Emirates.
Gap to Open Stores in Philippines 10/9/07
Apparel retailer Gap Inc. on Tuesday said it agreed to open Gap and Banana Republic stores in the Philippines.
Financial terms were not disclosed
Over the next five years, Gap Inc. and its franchise partner Rustan Group of Cos. plan to open about eight Gap Stores and four Banana Republic Stores throughout the Pacific Rim country.
The first Gap store is expected to open by the end of the year and the first Banana Republic store is expected to open by the spring of 2008. All stores are expected to be open by 2012.
Shares rose 4 cents to $18.89 during midday trading.
Gap to expand into Philippines 10/9/07
NEW YORK, Oct 9 (Reuters) – Clothing retailer Gap Inc <GPS.N> said on Tuesday that it had reached a deal with wholesaler Rustan Group of Cos to open stores in the Philippines.
The San Francisco-based company said it would open about eight Gap stores and four Banana Republic stores around the Philippines. The first Gap store is expected to open by year’s end, while Banana Republic will open next spring, the company said.
Gap said it would select suppliers for the stores, while Rustan Group will operate them and stock their shelves.
In all, the company plans to open eight Gap and four Banana Republic stores in the Philippines by 2012.
“The Philippines represents a natural market for Gap,” said Ron Young, the company’s vice president for international strategic alliances. “The country has a strong, steadily growing economy, and consumers in this market have a great interest in iconic apparel brands.”
Gap, which also runs Old Navy, has similar franchise agreements in 11 countries throughout the Middle East and Asia.
Gap Will Add 12 Locations in the Philippines by 2012 (Update1)
By Stefanie Batcho-Lino
Oct. 9 (Bloomberg) — Gap Inc., the largest U.S. clothing retailer, will open 12 stores in the Philippines by 2012 to expand in Asia as U.S. sales decline.
Rustan Group of Cos. will help to add eight Gap and four Banana Republic locations in the country in the next five years, the San Francisco, California-based company said today in a statement.
The company has signed franchise accords since 2006 and has partners in Bahrain, Indonesia, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, South Korea, Turkey and the United Arab Emirates. Gap wants to reverse two years of profit declines after its namesake and Old Navy chains lost U.S. market share.
Gap rose 3 cents to $18.88 at 12:27 p.m. in New York Stock Exchange composite trading. The shares declined 3.3 percent this year through yesterday.
The company operates more than 3,100 locations, including Gap sites in six countries and Banana Republic stores in three nations.
|“I created Gap with a simple idea: to make it easier to find a pair of jeans. We remain committed to that basic principle.”
Don Fisher, Gap Inc. Founder and Chairman Emeritus
Credits: Photos taken from GAP Inc. website