GAP to expand internationally through franchising
Gap Inc. has announced that it has signed a franchise agreement which will enable it to launch its Gap and Banana Republic brands onto the Greek, Romanian, Bulgarian, Cypriot and Croatian markets. The franchise agreement has been signed with the Marinopoulos Group, which is, according to the information provided, one of Greece’s leading retail, commercial and industrial groups. Under the terms of the agreement, the Group now has exclusive rights to operate Gap and Banana Republic stores in this region.
Ron Young, senior vice president of international strategic alliances for Gap Inc, commented on this deal, saying, “These markets represent a natural extension for our brands and we have an outstanding franchise partner in this region. The Marinopoulos Group has a successful track record of introducing well-known retail and apparel brands in these markets and they are an ideal partner for us.” The first Gap store is expected to open its doors to the public in Greece in autumn 2008 and the first Banana Republic stores at the beginning of 2009.
Gap Inc. is a leading retail network selling its products under a number of brands including Gap, Banana Republic and Old Navy. The company has over 3,000 stores in the United States, the United Kingdom, Canada, France, Japan and Ireland. Furthermore, the company is expanding internationally by concluding franchise agreements for Asia, the Middle East and Europe.