Gap Inc. Opens First Flagship Store in Hong Kong
Opening Celebrates First Anniversary for Gap in Greater China
HONG KONG--()--Gap Inc. (NYSE:GPS) today announced the launch of its first flagship store in Hong Kong. The store will be Gap's ninth in the Greater China region as the company continues to expand the international reach of its brands through its franchise, online and company-operated channels.
“We’re very optimistic about our entry into Hong Kong and believe it’s a natural next step for our expansion strategy in China, especially given its international relevance as a gateway to the fashion world.”
The new store spans more than 15,000 square feet over four floors on the sought-after Queens Road in Hong Kong’s burgeoning Central District. The store location is housed in a new building with an award winning architectural design. With large floor-to-ceiling windows, white marble and Chinese oak wooden floors, the store creates an inviting and inspiring environment for customers to shop collections from Gap, GapKids, babyGap and GapBody.
“Opening in Hong Kong is a momentous occasion and demonstrates Gap Inc.’s continued commitment to make our optimistic American style more readily available to Chinese consumers,” said Redmond Yeung, president of Gap Greater China. “Based on the demand levels we’ve experienced through e-commerce sales over the last year, we know that Hong Kong consumers have a strong appetite for Gap’s affordable, high-quality and uniquely American fashion.”
Gap Inc. celebrated its first anniversary in China this month, and during this time has expanded to four stores in Shanghai and four in Beijing. In addition to Hong Kong, the company will open new stores in Shanghai, Hangzhou and Tianjin over the coming weeks. Since launching the ecommerce site www.gap.cn last year, online orders have been logged from over 330 cities in China, covering all parts of the country. The company expects to grow the fleet to about 45 stores in China by the end of fiscal 2012.
Stephen Sunnucks, president of International, Gap Inc. added, “For over 40 years, Gap has provided American style, celebrated creativity and made a positive difference in the communities where we conduct business. We see these same values resonating as strongly with customers and employees in China as they do in our established markets.”
For major markets such as China, the company typically enters with brand-building flagship stores, followed by Outlet and smaller stores in outlying areas and an online expression of the brand. Sunnucks continued, “We’re very optimistic about our entry into Hong Kong and believe it’s a natural next step for our expansion strategy in China, especially given its international relevance as a gateway to the fashion world.”
About Gap Inc.
Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. Fiscal year 2010 net sales were $14.7 billion. Gap Inc. products are available for purchase in over 90 countries worldwide through about 3,100 company-operated stores, about 200 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.
This press release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," "project," and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding:
- expanding internationally; and
- future store count in China.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company's actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following:
- the risk that changes in general economic conditions or consumer spending patterns will have a negative impact on the company’s financial performance or strategies;
- the highly competitive nature of the company’s business internationally;
- the risk that the company or its franchisees will be unsuccessful in gauging fashion trends and changing consumer preferences;
- the risk that the company’s efforts to expand internationally may not be successful and could impair the value of its brands;
- the risk that the company’s franchisees will be unable to successfully open, operate, and grow the company’s franchised stores;
- the risk that the company or its franchisees will be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying or terminating leases for existing store locations effectively;
- the risk that the company will be unsuccessful in implementing its strategic, operating and people initiatives;
- the risk that acts or omissions by the company’s third-party vendors, including a failure to comply with the company’s code of vendor conduct, could have a negative impact on its reputation or operations;
- the risk that changes in the regulatory or administrative landscape could adversely affect the company’s financial condition, strategies, and results of operations; and
- the risk that the company will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits.
Additional information regarding factors that could cause results to differ can be found in the company's Annual Report on Form 10-K for the fiscal year ended January 29, 2011 and the company’s subsequent Quarterly Reports on Form 10-Q.
These forward-looking statements are based on information as of November 25, 2011. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Brunswick Group (Hong Kong)
Joseph Chi Lo, +852 3512 5033
Karin Wong, +852 3512 5077
Louise Callagy, +1-415-427-2350