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Gap to open stores in RP
« on: December 15, 2007, 08:53:10 AM »
The US clothing firm Gap, Inc., will open stores in the Philippines through its partner, the Rustan Group of Companies.

In a statement, the company said it has signed a franchise agreement with Rustan’s to introduce the Gap and Banana Republic brands in the country.

“Over the next five years, Gap, Inc.’s franchise partner Rustan plans to open a combined total of approximately eight Gap stores and four Banana Republic stores,” it said.

The first Gap store in the Philippines is expected to open by the end of this year and the first Banana Republic store in (March) 2008, the company added.

All 12 stores are scheduled to be in place by 2012.

Ron Young, Gap’s senior vice-president for international strategic alliances, said the Philippines represents a natural market for the firm 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,” he added.

Under the agreement, Gap will use Rustan’s local operational expertise, and provide access to Gap and Banana Republic’s clothing and accessories.

Rustan’s, on the other hand, will hold exclusive rights to operate Gap and Banana Republic stores in the Philippines.

“[It] will purchase merchandise from Gap or suppliers designated by Gap, and must adhere to Gap’s quality standards to preserve the reputation of the Gap and Banana Republic brands,” the clothing retailer said.

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