Top clothing firm Gap to open 12 stores in RP

Clothing retailer Gap Inc. will be expanding to the Philippines through a franchise agreement with the Rustans Group of Companies. The agreement will bring the Gap and Banana Republic brands to the Philippines. In a statement dated Oct. 9 and datelined San Francisco, Gap said it and partner Rustans plan to open a combined total of eight Gap stores and four Banana Republic stores throughout the Philippines. The first Gap store is expected to open by the end of this year, and the first Banana Republic stores by spring 2008. All stores are scheduled to be open by 2012. “The Philippines represents a natural market for Gap Inc. to expand its international presence. The country has a strong, steadily growing economy, and consumers in this market have a great interest in iconic apparel brands such as ours," Ron Young, senior vice president of international strategic alliances for Gap Inc. said in the statement. The company said that through the agreement, Gap Inc., which is listed in the New York Stock Exchange, will leverage the Rustan Group’s local operational expertise, and will provide access to Gap and Banana Republic’s clothing and accessories. In addition, the Rustan Group of Companies will hold exclusive rights to operate Gap and Banana Republic stores in the Philippines, will purchase merchandise from Gap Inc. or suppliers designated by Gap Inc., and must adhere to Gap Inc.’s quality standards to preserve the reputation of the Gap and Banana Republic brands. “We’re pleased to have forged a relationship with such an excellent local partner. In addition to strong operational expertise and a deep understanding of their local customer base, the Rustan Group of Companies has a track record of successfully introducing well-known fashion and apparel brands to international markets," Young said. Gap Inc. directly operates Gap brand stores in six countries and Banana Republic stores in three countries. The announcement that it will branch out in the Philippines follows similar announcements of expansion in Bahrain, Indonesia, Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, South Korea, Turkey and the United Arab Emirates. - GMANews.TV