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Gap moves into China with 4 stores and e-commerce

Posted By admin On June 24, 2010 @ 11:03 am In Business, Leisure, Lifestyle & Culture, Retail, World | 1 Comment

Gap has announced its expansion into China later this year. Gap has announced its expansion into China later this year.

US-based clothing retailer Gap has announced that it will open four stores and an e-commerce operation in China later this year – a major expansion for the business.

The global brand plans initially to open two stores each in Beijing and Shanghai, and simultaneously bring an online shopping experience to all Chinese consumers.

The first four Gap stores will feature a full range of Gap adult, GapKids and babyGap product, including all styles of the brand’s 1969 Premium Jeans.

In a statement, the company said: “This announcement marks the start of a long-term, multi-channel consumer market entry strategy for Gap Inc. that involves more stores in major regions, including Hong Kong, in the coming year.”

In Shanghai, a 1,796 square metre Gap flagship will be located on the premier Nanjing West Road, occupying two floors in the Venture Tech building. It will be followed by another 1,140 square metre flagship located on Mid Huaihai Road, one of Shanghai’s top high streets.

In Beijing, a 1,165 square metre flagship store will span two floors in the APM building on Wanfujing Street; another 1,800 square metre store will be opened in Chaobei Joy City, a large scale regional shopping centre.

As part of its multi-channel entry strategy, Gap Inc. has partnered with Shanghai Yi Shang Network Information Co., Ltd., an e-commerce company with a legacy of delivering online retail experience in China.

To lead these expansion efforts, the company has appointed Redmond Yeung as President, China for Gap Inc., and Lorenzo Moretti, as Managing Director, China for Gap Inc. 

Both Yeung and Moretti are accomplished executives who together bring hands-on experience building global brands including Best Buy, Tesco and Marks & Spencer. Yeung will lead business development and real estate strategy, and Moretti will focus on all store operations, product-to-market activities and infrastructure development.

Based in Shanghai, where Gap Inc. will also open its corporate China headquarters, they will report to John Ermatinger, President, Asia Pacific Region for Gap Inc., who will oversee the businesses for both Japan and China.

“For over 15 years, we’ve been increasing our connection to global consumers by offering Gap’s American inspired casual style to now over 25 countries,” said Glenn Murphy, Chairman and CEO, Gap Inc. “Now, after spending a lot of time listening to Chinese consumers and learning more about their shopping preferences, we’re excited at the prospect of meeting their fashion needs – initially by bringing our Gap designs to our stores and online later this year.”

Earlier this week, Gap Inc. also announced that Katherine Tsang, chairperson for China at Standard Chartered PLC, a leading international bank, has been appointed to the Company’s Board of Directors, effective August 16, 2010.

Gap is also planning to open its first store in Italy this year and is launching an e-commerce business in Western Europe. Over the past five years it has relied on a franchise-based model to establish a presence in south-east Asia, the Middle East and Russia.


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