Gap Inc now occupies more floor space in Asia than in Europe

By

Olivier Guyot

Published
Mar 4, 2013

Following the close of Gap’s fourth quarter for 2012 (February 28), the number of squared metres occupied by the brand in Asia is in excess of that in Europe, after the group opened no less than 16 stores in Asia in the past three months compared to just two in Europe. And it doesn’t look like things are going to change. For its financial year 2013, the American group, whose ambition is to generate more of its revenue abroad (Gap makes two thirds of its turnover in the USA), is looking to expand in Asia.

Gap has opened 33 stores and outlets in China this year and is set to open 35 more this year. In Japan, Old Navy is planning to open 20 new stores after the success of its first store opening there last year.

For the year 2012, the group recorded an 11% growth increase in Asia, with revenue of 924 million euros (or 1.2 billion dollars), while growth in Canada progressed by 6% to 753 million euros. The European market remained fairly stable at 631 million euros. In total, the group recorded a 5% increase in comparable sales to 12 billion euros for 2012.

In its domestic market, where the group struggled for the most part of 2011, sales at Gap Inc grew by 5%. For North America, sales in all divisions are on the up: Gap saw a progression of 4%; Banana Republic 3% and Old Navy was up 8%. While work will continue on increasing Old Navy and Gap sales, the group has been putting particular effort into the growth of its Athleta brand, with 35 planned store openings for the coming year. The group’s biggest growth for 2012 was seen in its online activity, where revenue was up by 24% to 1.46 billion euros.