SAN FRANCISCO, Sept 18 Gap Inc (GPS.N) said on
Thursday that it would expand its Gap stores into Mexico
through a franchise deal with department store chain
Gap, the global apparel retailer based in San Francisco,
said the chain will have the exclusive right to sell Gap
merchandise through a franchised "store within a store" model.
Distribuidora plans to evaluate the market and determine
the target number of total stores, but expects to open its
first Gap "store within a store" next spring, Gap said. The
concept will not roll out in all Distribuidora Liverpool's
Other global companies have been looking recently to the
Mexican market with its growing middle class, including
Starbucks Corp (SBUX.O).
The Seattle-based coffee chain is working with fast-food
franchiser Alsea (ALSEA.MX) to increase its base of 201 coffee
shops in Mexico by at least 80 new stores annually over the
next five years.
Gap also said on Thursday that an existing agreement with
Fawaz Alhokair Group for Gap and Banana Republic stores in
Saudi Arabia would be expanded to include those brand's stores
in Egypt and Jordan over the next five years. The first Gap
stores in those countries are expected to open by this year's
Gap has been expanding its franchise program over the past
two years and, with the newly added countries, will soon
operate in 21 countries. Currently, the company has some 70
franchised Gap stores and 30 franchised Banana Republic stores
around the globe.
In the United States and Canada, the company operates some
2864 of its own Gap and Banana Republic stores. It also
operates 306 of its own Gap and Banana Republic stores in the
United Kingdom, France and Japan.
Gap's third chain, Old Navy, does not operate outside the
United States and Canada.
(Reporting by Alexandria Sage, editing by Leslie Gevirtz)