Gap Inc. Opens First-Ever Franchise-Operated Old Navy Stores
First Franchise Stores to Open in Philippines, More Planned in 2014
SAN FRANCISCO - March 18, 2014 - (BUSINESS WIRE) - Gap Inc. (NYSE: GPS) announced today its plans to open five franchise-operated Old Navy stores in the Philippines in 2014, an important pillar of the company’s international growth strategy for the brand. The first two Old Navy stores will open in Manila in March and there are plans to open three more stores in the second half of the year for a total of five Old Navy stores in 2014.
"This is an extremely exciting time for Old Navy," said Robert Frank, EVP, Old Navy International. "With our recent entry into China and continued growth in Japan, the openings in the Philippines position us for further growth in Asia and beyond."
"The Philippines is a natural fit for Old Navy as the country has a strong and growing economy, and consumers in the market are interested in iconic American apparel brands," said Blair Dunn, General Manager, Old Navy Franchise. "Through local partners we have immediate access to a deep understanding of the marketplace and consumer needs."
The first of two Old Navy stores, a dedicated three-story building, will open in the heart of Manila’s fashion and shopping district, Bonifacio High Street, on March 22. The second store will open in the prominent Glorietta mall on March 29. Both stores will launch with the Old Navy Spring 2014 collection of the most current fashion essentials and accessories for men, women, children, baby and maternity in the same energizing store environment that made the brand famous.
The three additional Old Navy stores are targeted to open in the Manila area in the second half of this year in new and existing developments.
Old Navy is partnering with Stores Specialists, Inc. to open the stores, which already operates Gap brand and Banana Republic stores in the Philippines. "Local consumers are excited to welcome an iconic American brand like Old Navy and we’re proud to help introduce the brand in our market," said Anthony Huang, Executive Vice President, Stores Specialists, Inc.
About Old Navy
Old Navy is a global apparel and accessories brand that makes current American fashion essentials accessible to every family. Originated in 1994, the brand has now grown to one of the largest apparel retailers in North America. A division of San Francisco-based Gap Inc. (NYSE: GPS), Old Navy brings a fun, energizing shopping environment to its customers in more than 1,000 stores in the U.S., Canada and Japan. For more information, please visit www.oldnavy.com.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,100 company-operated stores, over 350 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.
About Stores Specialists, Inc.
Stores Specialists, Inc. (SSI) is a wholly Filipino-owned corporation established in 1987 with the mission of pioneering into freestanding specialty store concepts. It broke ground in specialty retailing by expanding its distribution through freestanding stores in prime shopping malls in Metro Manila. Through the last two decades, SSI grew its retailing operations by acquiring the exclusive marketing and franchise rights to some of the finest and most prestigious international brands in the world. It is now the leading specialty store retailer in the Philippines, trading over 600 stores to date.
Forward Looking Statements
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 the following:
- Old Navy franchise store openings in the Philippines in 2014.
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 could adversely impact the company’s results of operations;
- the highly competitive nature of the company’s business internationally;
- the risk that the company or its franchisees will be unsuccessful in gauging apparel trends and changing consumer preferences;
- the risk that the company’s franchisees will be unable to successfully open, operate, and grow their franchised stores in a manner consistent with the company’s requirements regarding its brand identities and customer experience standards;
- 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 natural disasters, public health crises, political crises, or other catastrophic events could adversely affect the company’s operations and financial results;
- 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 the company will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits; and
- the risk that changes in the regulatory or administrative landscape could adversely affect the company’s financial condition, strategies, and results of operations.
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 February 2, 2013, as well as the company’s subsequent filings with the Securities and Exchange Commission.
These forward-looking statements are based on information as of March 18, 2014. 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.