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Gap Forecasts Asian Expansion in 2013
International expansion fueled a 5 percent increase in comparable sales for Gap Inc. in fiscal year 2012, compared with a 4 percent decline in fiscal year 2011, the company announced on Feb. 28. With $15.7 billion in net sales made in fiscal year 2012, Gap is interested in more international expansion.
On March 1, the San Francisco–headquartered retail giant issued a statement that it will open as many 20 stores for its Old Navy division in Japan this year. It will open Old Navy locations in the Japanese metropolises of Nagoya, Kobe, Osaka and Yokohama. Old Navy opened a Tokyo store in 2012.
After Gap announced its FY2012 results, it announced that it will open 30 stores from its Athleta division in the FY2013 and that it will open 35 stores in China in the upcoming year. There also is growth on the horizon for the company’s franchisees. Gap’s franchisees will open up to 75 franchise stores in the upcoming year.
During its FY2012, the company noted that it “made significant progress toward optimizing” its Gap and Old Navy store fleet through shuttering stores. In the fourth quarter alone, Gap Inc. closed 41 stores in its Gap North America Division, three in Gap Asia and 12 in Old Navy North America.
—Andrew Asch
