Gap Inc. (GPS), a premier global specialty retailer, is planning to open a series of franchise stores in Australia as part of its brisk international expansion. Since its first international venture in Singapore and Malaysia about four years ago, Gap’s franchise network has extended to over 130 stores in 20 countries and has established itself as a key business line for the company.
Initially, the company is planning to open 10 to 15 Gap stores across the country; the first is scheduled open in August at the Chadstone Shopping Centre in Melbourne. The company intends opening the second store by early next year in Sydney.
In order to operate its stores, Gap has formed a strategic partnership with Brand Republic, a subsidiary of Busby Holdings, which currently operates Guess and Aldo brand stores. The agreement offers Brand Republic the exclusive rights to run Gap stores in Australia.
During fiscal 2010, Gap expects to open about 65 stores mostly outside the U.S. The long-term growth investments of the company include rolling out the new Old Navy store model to an additional 200 stores; opening its first Gap stores in China and Italy; expanding Banana Republic in Europe; and adding more Outlet stores in Canada, Europe and Asia.
Read the full analyst report on “GPS”
Zacks Investment Research
