Gap opened it’s first Australian store in Melbourne’s Chadstone shopping centre in August, with a second central business district flagship store now trading in Westfield’s Sydney City development. The launch of the brand in Australia is part of a corporate strategy to expand its footprint in Asia and the Pacific, with a focus on China, with more store openings to come in Thailand, Singapore, Malaysia and Indonesia in 2011. Gap Inc only started to expand internationally four years ago and,
, according to Stefan Laban, vice president for strategic alliances for the company, first started to assess the Australian market three and a half years ago.
Gap Inc has signed the license for Gap with Brand Republic, a subsidiary of Busby Holdings Australia, which has grown from two Guess stores at Crown Casino in 2002, to more than 50 stores across the Aldo, Guess, Travelite, Diplomat and now Gap brands.
Brand Republic plans to open a further 10 to 15 stores in key locations nationally over the next three to four years.
Gap was started in 1969 by Doris and Don Fisher, with a denim concept store near the San Francisco State University, and now has more than 130 franchised stores trading under franchise agreements in 24 countries across four continents.
Gap Inc, the US parent company, operates more than 3000 stores across the US, Canada, UK, Ireland, France and Japan.
The Chadstone store occupies 1200sqm over two levels, while the new Sydney City store has an 800sqm footprint on one level. Both stores are what Gap terms as “combo stores” incorporating men’s, women’s, children and babywear ranges.
The Chadstone flagship store has around 60,000 SKUs in a contemporary retail space that incorporates, but does not over-emphasise, the Gap as an American brand.
Laban told Inside Retailing Magazine that although Australia has world class retail centres, such as Chadstone and Bondi Junction, Gap has faced difficulty in finding locations in the right centres of a suitable size.
The 1200sqm Chadstone and 800sqm Sydney stores compare with an average size of 350sqm for Australian tenancies.
Based on the latest international store design, the Australian stores include timber and marble floors, a white palette for walls and ceilings and concealed lighting.
Internally, the stores have an open look and feel with low tables for stock display and selections, that incorporate mannequins in a catwalk display concept.
Cash and wrap service centres are in front of large brand graphics, and the stores use tall, angled mirrors as a design feature. The Chadstone store incorporates escalators, lift and entries to centre malls on the two levels.
Laban said the stores remain true to heritage with a strong denim story, but also include an extensive range of basics “with a great color palette”.
He said Gap offers great styling, fashion, quality and value for money, and research by the company has demonstrated a high brand recognition compared to most other international markets.
Colors are particularly striking in the Gapkids and BabyGap ranges, which Laban believes are a key opportunity for the company.
This feature first appeared in Inside Retailing Magazine. Click here to subscribe