After gaining recognition among Brazilian customers by
offering its products via duty-free channels,
) is now set to open its first Brazilian stand-alone Gap stores
in collaboration with Tudo Bom Comércio Ltda. Located in Sao
Paulo, Brazil's largest city, the novel Gap stores will offer
complete Gap collections including Gap, GapKids and babyGap. The
company expects the store to initiate operations by fall of 2013.
Gap's plan to step in to the Brazilian retail space is guided by
its ongoing strategy to expand globally. Brazil, being the fifth
largest country in the world and Latin America's largest economy,
provides promising opportunities for retailers like Gap. Given
such encouraging prospects, Gap has slated down plans to
significantly bolster its presence in the Brazilian market in the
next five years.
Gap's quest to broaden its scope beyond national borders began in
2006 with the opening of its first franchise operated store
outside U.S. Over the years, the company has come a long way in
popularizing its brands throughout the world. Moreover, the
company's store base has increased significantly in these six
years, and it recently celebrated the opening of 300th franchise
outlet. Gap's franchise stores are spread across 40 world markets
including Asia, Europe, Latin America, the Middle East and
The company had first set foot in Latin America in 2011 as it
opened its first store in Santiago, Chile. The company most
recent venture in this region was its store opening in Uruguay.
Apart from these, the company has operations in Latin American
countries namely Panama, Colombia and Mexico.
Gap is a premier international specialty retailer 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.
Gap products are available worldwide through a network of about
3,000 company-operated stores, more than 300 franchise stores and
e-commerce websites. The company competes head-to-head with
national and local department stores and discount stores,
American Eagle Outfitters Inc.
The TJX Companies Inc.
Currently, Gap's shares maintain a Zacks #2 Rank, which
translates into a short-term Buy rating. Our long-term
recommendation on the stock remains Outperform.
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