Gap expansion strategy 2013

US retailer Gap has been on a mission to expand and last year the group opened 75 new Gap and Banana Republic stores. This year the company is focussing on creating a new international structure. Gap intends to expand into Brazil and Peru in 2013 and into India in 2014. The group is also trying to strengthen relations with its partners. “In December, our franchise partner FIBA launched a new e-commerce site in Turkey to supplement the merchandise offer of Gap and Banana Republic stores across the entire country. It was a big step forward for us. This is the first time that our relationship with a franchise partner has developed into a line,” said Stefan Laban, senior vice president of Gap International. “This was clearly a year that generated a lot of miles.” In addition to organisational developments and new markets, the Gap brand having success in its endeavours after its appointment of new creative director Rebekka Bay, last September. The first collection under Bay’s direction is scheduled for spring 2014 and her influence is already showing in the collections. “She works closely on the presentation of the collection and its key signature pieces. She brings an authentic point of view,” explained Fiona Collins, senior PR director for Europe. “For example, she pushed us to be confident enough to present a simple jeans and t-shirt outfit. Because that’s what Gap is ultimately. Rather than trying for a glam look, we are going toward something fresh and clean. It is also an opportunity to evolve the way we communicate. But it is still too early to discuss that.” In charge of the women’s, men’s, 1969, accessories, and “body” collections, Rebekka Bay wants to give Gap a new ‘creative impulse’, an area in which the two giants H&M and Zara are already far ahead. Gap’s international ambitions also include strengthening their presence of these two companies in Europe. “When you look at the activity of other brands such as Zara, you see it is huge in Europe, but very small in North America,” said Collins. “We are almost a reflection of this. We have this very strong activity in America, but in Europe, we are still very small. So there are huge opportunities.” Image: Gap SS13, Source: Fashion-United