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Gap Goes Global

It’s not like Gap Inc. – the popular American clothing company – hasn’t already gone global already. It has. But now there is even more potential global growth in the company. Recent announcement from the company was that it will be traveling to both Serbia and Ukraine before the end of the year. The first cities they are to hit will be Belgrade and Kiev. All the company’s merchandise – from Gap, to GapKids and BabyGap – will be available to customers in these countries.

Set Up in Serbia

So what are Gap’s plans in Serbia? The intention is to open a store in Belgrade, the country’s capital, before 2012. It is a great location for the clothing company, situated “at the crossroads of Southeast Europe.” Serbia will be the sixth country that will be “managed under Gap Inc.’s franchise agreement with The Marinopoulos Group, one of Greece’s leading retail, commercial and industrial firms.”

Undressing in Ukraine?

Well, not quite undress. But you might consider a different style of clothing in the next few months if you are a native of Ukraine. Things have definitely changed quite a bit since the days of communism in the region. Who would have thought at the time that such an icon of Americanism like the Gap would have a presence in the region? Well, that is exactly what is set to happen. And it’s likely to do well since there has been a bit of testing with the company having become available to Ukrainians in the last year via online ordering. By next month however, its products will be available in Kiev, the country’s capital city in a 9,000 square foot store on Kreschatik Street, a hugely bustling street in the city.

Great Gap Growth

According to the company’s President Stephen Sunnucks, “we look forward to bringing Gap’s distinctively American aesthetic to consumers in Ukraine , which is considered the fastest growing retail market in Eastern Europe, and Serbia with its young customers who love to shop.” Since there are very limited international brands available in these areas, “both markets underscore the effectiveness of our fast and flexible business model to successfully execute our global expansion strategy.” The company is now looking toward further advancing the already large share it has of the global clothing market ($1.4 trillion). In addition, Gap Inc. just announced it will be bringing together all its operations under “one division.”

As it is Gap has been growing pretty impressively over the years. Especially in the last five years. Indeed, Gap Inc. now boasts around 180 franchise stores and has a presence in 24 countries around the world, including the Middle East and Asia. This new intended development will result in there being brands in 28 countries “including Chile and Egypt in fiscal year 2011.” Within the next four years however, there will be an intended expansion rate of franchise stores to 400.

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