Global Franchise Expansion: The Gap Enters Thailand
Gap Inc. has inked a new franchise agreement that will yield new Gap stores in Thailand. Armin Systems Limited, a retailer in Thailand, has been designated as licensee and will open the first Gap location in Bangkok in the spring of 2010.
The Gap is the biggest independent retailer and includes the Banana Republic, Old Navy, Piperlime, and Athleta brands. Along with its partners, the Gap has opened 100 Gap franchise stores plus 34 Banana Republic franchise stores in 17 countries. Across North America, Europe, and Japan, the Gap has over 3,100 locations.
Despite this already sizable network, the company is looking to emerging regions to help buoy sales as the recession has curbed spending in the United States. The Gap clearly understands the importance of spreading internationally and getting its name out to more and more areas.
On the other hand, oversaturation of markets also can be a concern so it is crucial for companies to tactically place their locations to provide the widest consumer access possible without any overlap. Remember when you couldn’t walk one block without seeing three Starbucks? It was forced to scale back because it had flooded cities with shops! It’s definitely a fine tuning act to open new stores without creating too much supply and is one that shouldn’t be done without proper advice.
Want to strategically expand your business? A methodical franchise attorney can help you increase your branches the right way!
