San Francisco, May 26, 2011 – Continuing with its global expansion strategy, Gap Inc. today announced plans to open its first store in an outlet center in Italy: a Gap store at the Vicolungo Outlet Center near Milan.
“We are excited to bring the value expression of Gap brand to Italy for the first time and provide Italian consumers with the opportunity to purchase products designed specifically for Gap’s fashion-minded, value-driven customer,” said Stephen Sunnucks, President, International, Gap Inc.
The Gap at Vicolungo is expected to open on June 2, 2011 and will be housed in a 700 square meter space. The store will offer the Gap style that customers expect for exceptional value through a combination of wardrobe staples, such as denim and logo products, as well as seasonal assortments for men, women, kids and baby.
“Opening only six months after the successful launch of our first flagships in Italy, this new store represents the fastest execution of our international strategy to date; adding our Outlet channel where we have been in-market for a period of time,” said Sunnucks. “With such a strong initial response from our customers, we will continue to expand our presence in Italy with our first stores in Rome and two additional Gap stores in outlet centers later this year.”
Gap Inc. currently operates more than 370 stores through its Outlet channel. Over the last four years, Gap Inc.’s international Outlet store base has increased over 500 percent across the United Kingdom, Canada and Japan. Gap Inc. plans to grow this channel further with about 25 additional international stores in 2011 and through new market entries, such as China in 2012.
Gap Inc. is focused on growing its share of the $1.4 trillion global apparel market. To capitalize on its significant global business opportunities, the company recently announced the combining of its International operations into one division. To read more about recent international news, click here. To learn more about Gap Inc.’s global runway, click here.
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:
· Global expansion strategy, including future store openings in Italy and China and future outlet expansion;
· Growing global market share.
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 strategies;
· The highly competitive nature of the company’s business internationally;
· The risk that the company 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 will be unsuccessful in identifying, negotiating, and securing new store locations effectively;
· The risk that the company will be unsuccessful in implementing its strategic, operating and people initiatives;
· The risk that changes in the company’s credit profile or deterioration in market conditions may limit its access to the capital markets;
· The risk that updates or changes to the company’s information technology (“IT”) systems may disrupt its operations;
· 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 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 January 29, 2011.
These forward-looking statements are based on information as of May 26, 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.
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 180 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.