In an effort to grow its worldwide reach through strategic
international expansion plans, leading U.S. fashion retailer,
), recently announced the opening of its first individual store in
Mexico. This store, offering Gap, GapKids and babyGap assortments,
will be opened in the newly designed Interlomas Mall, just outside
the Mexico City, covering an area of 10,000 square foot.
Earlier, Gap offered its merchandise throughout Mexico in
Liverpool Department stores, which is one of the company's
franchise stores. The new stand-alone store opening reflects the
company's brand recognition and awareness within the consumers of
Management believes that the new store will fetch great
opportunities in the Mexican market and beyond. Moreover, seeing
the encouraging response in Mexico through Liverpool Department
stores, Gap is concentrating on offering American way of styling to
the customers internationally.
Previously, the clothing retailer has experienced successful
debut of its stores in Central and South America, which encouraged
Gap to expand in Mexico. This reflects the company's continuous
endeavor to expand globally. Further, Gap is planning to open new
stores in the Latin American region this year.
By the end of 2012, Gap will open a new store in Bogota and
Medellin, Columbia under an agreement with its retail partner
Superior International. Earlier in this year, Gap had already
opened a store with Superior International in Panama.
Recently, Gap signed a new deal with Neutral Duty Free, in order
to open its first store in Uruguay by the end of 2012. Management
believes that Latin America is one of the strongest emerging retail
markets worldwide and has solid brand recognition for Gap and
Banana Republic brands of the company.
On the back of the successful launch of Gap and Banana Republic
in Chile and Panama, management is confident about achieving
favorable opportunities in Uruguay market along with other
countries as well.
Gap offered its products online in 2010 in Panama, Colombia,
Uruguay, Chile, and Peru as well as in several other Latin American
countries through its international shipping provider.
Founded in 1969 and headquartered in San Francisco, Gap is a
leading retailer that operates under Gap, Banana Republic, Old
Navy, Piperlime and Athleta brands. The offerings of the company's
core brands include clothing, accessories as well as personal care
products for men, women and kids. Gap operates in 90 countries
through a pipeline of 3,000 company-operated stores, 250 franchise
stores and e-commerce sites. Gap's net revenue was $14.5 billion in
the fiscal 2011.
Gap, which competes with
Abercrombie & Fitch Co.
American Eagle Outfitters Inc.
), carries a Zacks #1 Rank, translating into short-term Strong Buy
rating for the next 1-3 months. However, we still retain our
long-term 'Neutral' recommendation on the stock.
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