As part of its international expansion strategy, clothing
The Gap, Inc.
) recently announced its plans to open 5 Old Navy
franchise-operated outlets in the Philippines.
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The first store, which is slated to open on March 22, 2014, will
be situated at Bonifacio High Street in Manila. The location is a
key shopping and fashion hub of the city and is extremely
favorable for the company. Gap's second outlet scheduled to open
on March 29, 2014, will be situated at the Glorietta mall, also
Both the above mentioned outlets will open with the brand's
collection for Spring 2014, comprising accessories for women,
men, kids and maternity and other fashionable necessities. The
other three stores are expected to be opened in the second half
of the year.
The company chose the Philippines for its Old Navy
franchise-operated outlets as the country has a strong and
progressing economy with a market, which sees promising demand
for American clothing brands. Also, Manila being the country's
capital is an ideal location to introduce the brand.
Further, to open these outlets, Old Navy intends to collaborate
with Stores Specialists, Inc., which operates the company's other
brands, i.e., Gap and Banana Republic, in the Philippines. With
its latest Chinese operations and ongoing success in Japan, the
store openings in the Philippines are likely to help Gap on its
growth trajectory in Asia and beyond.
Gap, based in California, is one of the most renowned and
dominant global specialty apparel retailers, selling casual
apparel, personal care, and accessories for men, women, children
Currently it carries a Zacks Rank #3 (Hold). However, other
better-ranked stocks in the related sector include
Foot Locker Inc.
American Apparel, Inc.
Columbia Sportswear Company
), all sporting a Zacks Rank #2 (Buy).