Global specialty retailer Gap opens its first standalone store in Sandton, Johannesburg, today and has announced plans for two more stores this year.
The opening of the Sandton City store follows hot on the heels of the entry of retail giant Inditex with its Zara fast-fashion chain late last year.
As demand slows in Europe and the US, more retailers are seeking growth in emerging markets such as SA.
Gap has said it plans to open 15-20 standalone stores with franchise partner Stuttafords within the next five years.
The second store will open in Cape Town's Tyger Valley Shopping Centre tomorrow, followed by a third in Pretoria's Brooklyn Mall later this year.
Each store will house product from the international Gap, GapKids and babyGap collections, and the assortment will be customised seasonally, the company said.
The opportunity to acquire the 600m² Sandton store came at the right time, Laban said.
"There will be more diversity in the market, which will bring attractive pricing and elevate the local players' game," he said. "It will keep everyone on his toes and ultimately the consumer wins."
Stuttafords had always carried Gap clothing but the standalone store would allow the company to bring a full assortment to the country, he said. Stuttafords' local knowledge and retail expertise made it the perfect partner.
Gap is also opening stores in Georgia, Azerbaijan and Lebanon this year.
In the 2011 financial year, Gap Incorporated, which owns brands such as Banana Republic and Old Navy, opened franchise stores in eight new countries and grew the net sales of its franchise business by 45%. It expects to have 400 franchise stores by the 2014 financial year.
The opening of the standalone Gap stores in SA would not present a threat to other retailers, Shamil Ismail, a retail analyst at BNP Paribas Cadiz Securities, said yesterday.
"While Gap Inc is a leading retailer, there hasn't been a huge appetite for the brand in SA through Stuttafords."
Source: Business Day
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