Gap Inc said on Wednesday that it plans to more than triple sales in China in three years as the retailer seeks to grab a bigger piece of the overall US$1.4 trillion global clothing market.
The San Francisco-based clothing chain, which operates stores under the Gap, Old Navy, Banana Republic and Athleta brands, generated US$300 million in sales in China in the latest fiscal year that ended Feb. 1. It said China will be its biggest growth initiative.
Gap had 81 stores in China at the end of last year and unveiled its first Old Navy store in the country earlier this year. It plans to open about 30 additional Gap stores in China in the current fiscal year.
“Gap has the ability to grow aggressively in China,” Jeff Kirwan, president of Gap’s Greater China division, told investors at its investor meeting on Wednesday.
Gap is also trying to meld its online business with its physical stores as it sees shoppers’ purchases influenced by the Web and mobile devices.
The company, which has been among the bright spots among its peers, said last week that revenue for stores open at least a year fell 6 percent last month — more than the market had expected — partly because of bad winter weather.
Gap had already told investors that a shift of the US’ observance of Easter into April this year, from March last year, would hinder its sales for the month.
It also said that first-quarter gross margins would be lower than last year, due in part to the rough winter in much of the country and high inventory levels.
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