Encouraged by the response of its first Latin American store and
in tune with its strategy of expanding international footprint,
Gap Inc.
(
GPS
) stepped into Panama by opening two stores -- one Gap and one
Banana Republic. The stores have been launched under the franchisee
model in agreement with Superior Retail Inc.
Located in the Albrook Mall in Panama City, the stores will
offer the U.S collection of Gap, GapKids and babyGap and Banana
Republic's affordable luxury attire and accessories for both the
genders. As per management, the stores will have product
assortments customized in accordance with the taste of Panama
customers and the regions climate.
Gap had launched its first Latin American store in Chile, South
America last year. The opening of the new stores in Panama marks
the beginning of numerous stores that the company plans to open in
Latin America over the next two years.
Apart from Chile and Panama, the company plans to extend the
boundaries of its brands to three new Latin American countries,
namely Colombia, Uruguay, and Peru. Backed by its success in Chile,
the company remains confident of achieving a positive response in
the newly planned locations as well as other counties in the
region.
Gap presently has agreements in place with Superior Retail Inc.
to open three more franchisee stores -- two Gap and one Banana
Republic, in Panama through 2012. In 2012, the company is also
lined to open two additional Gap stores and its first Banana
Republic store in Chile, extending its existing agreement with
Komax.
Later in 2012, the company has plans to inaugurate its first
stores in Colombia in Bogota and Medellin, again under the
supervision of Superior. The company also has plans to set foot in
Uruguay in 2012, opening a new Gap store in agreement with a
subsidiary of Neutral.
Additionally, Gap announced plans to enter Peru in 2013 with a
Gap store to be launched in agreement with a subsidiary of
Komax.
Gap is one of the leading players in the highly fragmented
specialty retail sector offering a diverse range of clothing,
accessories and personal care products for men, women, children and
babies. Its flagship brands include Gap, Banana Republic, Old Navy,
Piperlime and Athleta. The company's globally recognized brands
complement one another, enabling it to leverage its position in the
sector.
The primary competitors of the company include
American Eagle Outfitters Inc.
(
AEO
) and
The TJX Companies Inc.
(
TJX
).
Currently, Gap's shares maintain a Zacks #3 Rank, which
translates into a short-term Hold rating. Our long-term
recommendation on the stock remains Neutral.
AMER EAGLE OUTF (
AEO
): Free Stock Analysis Report
GAP INC (
GPS
): Free Stock Analysis Report
TJX COS INC NEW (
TJX
): Free Stock Analysis Report
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