California Apparel News

Gap Inc. is serious about becoming the top apparel company in the world.

Gap Chairman and Chief Executive Officer Glenn Murphy and the retailer’s other top executives gave presentations on Gap’s plans to extend its reach around the globe. The presentation was given to Wall Street analysts at the company’s San Francisco headquarters on April 17.

Murphy stated the company is emerging from its pre-2007 strategy, in which it was primarily concerned with its domestic business.

Murphy joined Gap as the retail giant’s leader in 2007, and in the past five years, Gap Inc. built the infrastructure to be a nimble competitor around the globe. “We are entering a period of global growth,” Murphy said.

Gap Inc. recently reorganized its sales channels and divisions so there will be one global leader each for Gap as well as Banana Republic and Old Navy, its other brands, which, Murphy said, are considered classic American fashion lines around the world. Responsibilities for sales outside of the United States were formerly handled by a division called International.

Gap will increase its commitment to build franchise stores with retail partners across the globe, particularly in opening Gap stores in China and Old Navy stores in Japan. It also will open two Gap stores in São Paulo later this year and is scouting opportunities for stores in India. Also on the horizon are more international outlet stores.

Gap Inc. also guaranteed that it will offer omnichannel shopping around the world. Omnichannel bundles and blends all shopping channels, ranging from traditional bricks and mortar to increasingly popular mobile shopping.

“Over the next five years, key to our continued success will be pushing the envelope further to make shopping seamless to customers through our digital strategy,” Murphy said.

Gap Inc. also owns emerging brands such as women’s activewear retailerAthleta, contemporary online boutique Piperlime and contemporary boutique chain Intermix. It will continue to look for ways to develop North American business for its emerging brands, according to a Gap Inc. statement.

Gap is not the only retailer to set its sights on world domination. In February, Tadashi Yanai, the chairman, president and chief executive officer of Fast Retailing, the parent company to Japanese retailer Uniqloand Los Angeles denim line J Brand, announced aggressive expansion plans. “We will also create a framework to facilitate the opening of 200 to 300 large-format stores worldwide each year,” he said.