Gap to enter South America
Gap Inc. has announced that it has signed a franchise agreement to introduce the Gap brand in South America. According to the information provided, the first Gap store is expected to open in Santiago, Chile in the Parque Arauco mall in September 2011. As a result, Gap Inc. now has franchise agreements in place for a total of 25 countries on six continents.
Gap Inc. has, it says, signed a franchise agreement with Komax, for exclusive rights to operate Gap brand stores in Chile. Komax will purchase merchandise from Gap and must adhere to the company’s quality standards.
“We are looking forward to offering Gap’s modern, cool American designs to customers in a retail sector that is strong, and has an exceptional demand for fashion,” said Stephen Sunnucks, President, Gap Inc., Europe and Strategic Alliances. “Komax has impressed us with their local expertise in the market and proven track record of launching international brands to customers in Chile.”
Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. Gap Inc. operates about 3,100 stores in the United States, Canada, the United Kingdom, France, Ireland, Italy, Japan and China. The franchise business is a key part of Gap Inc.’s global business strategy. At the end of the third quarter of fiscal year 2010, the company had 165 franchise stores in 23 countries throughout Asia, Eastern Europe, Latin America, the Middle East and Australia. By 2015, the company plans to grow its number of franchise stores to 400. (kbp)