CHINA: Gap continues expansion with first Old Navy store
US clothing giant Gap Inc is continuing to expand outside of the US with the opening of its first Old Navy store in mainland China.
The 2,000 sq m store in the Jing'an District of Shanghai will open tomorrow (1 March) along with a dedicated Old Navy e-commerce site. The San Francisco company said it plans to open four additional stores under the banner in fiscal 2014.
The entry into the Chinese market, Gap said, follows Old Navy's launch in Japan in 2012. The brand also intends to open around 25 additional stores in Japan this year, taking its total in the country to 43.
"With our China entry, continued growth in Canada and Japan and the launch of our franchise business in the Philippines next month, we are well positioned to grow our share of the global retail apparel market," said Robert Frank, Old Navy's executive vice president of international.
In a separate announcement, Gap reported a 12.5% drop in fourth-quarter net profit and expects weakening foreign currencies to hit earnings for the full year.
Old Navy Opens First Store in Mainland China
Building on success of Gap brand, Old Navy opens in Shanghai, continues growth in Japan
“As we enter our 20th year, we’re excited to introduce our brand to more customers around the world and share our fun, energizing and unique shopping environment.”
With the debut of Old Navy’s first company-operated store, opening March 1 on Shanghai’s famous Nanjing West Road, the company plans to build on Gap brand’s three-year run of successful growth in the world’s second largest apparel market. A dedicated Old Navy e-commerce site will also be available simultaneous to the store opening, allowing customers across mainland China to shop the brand’s offerings for the entire family.
“At Old Navy, we’re about making current American fashion essentials accessible for every family,” said Stefan Larsson, global brand president, Old Navy. “As we enter our 20th year, we’re excited to introduce our brand to more customers around the world and share our fun, energizing and unique shopping environment.”
The 22,000 square foot (2,000 square meters), three-level Shanghai store is located in the Jing’an District, a major commercial area known for shopping, sightseeing, hotels and office buildings that draws thousands of locals and overseas visitors. The store features iconic elements from Old Navy’s U.S. flagship stores such as the famous “Super Modelquins” and Magic the Dog, as well as interactive features that will make shopping fun for the entire family, such as touchscreen video games and game tables.
“We plan to open a total of five stores in China in fiscal 2014, starting with the Shanghai store,” said Robert Frank, Old Navy’s executive vice president of international. “With our China entry, continued growth in Canada and Japan and the launch of our franchise business in the Philippines next month, we are well positioned to grow our share of the global retail apparel market.”
The entry into the Chinese market follows Old Navy’s successful launch in Japan in 2012. Old Navy plans to open about 25 additional stores this year in Japan, bringing the total number of stores in the country to approximately 43 by the end of 2014.
Launched in 1994, Old Navy brings fun, fashion and value to the whole family. Customers quickly connected with the brand, as Old Navy became the first retailer to reach $1 billion in annual sales in less than four years of operation. Old Navy operates more than 1,000 stores in the U.S., Canada and Japan and has an e-commerce presence that serves customers in nearly 80 countries around the world.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,100 company-operated stores, over 350 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.
Original source: http://www.businesswire.com/news/home/20140227006514/en/Navy-Opens-Store-Mainland-China#.UxBxqeN_uSp
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