Gap to open 20 new stores in China
American fashion giant plans to open nearly one new shop a week in China in the next six months as it joins other international brands seeking growth in Asia
Gap, the iconic American fashion brand, is set to expand by almost one new store a week in Hong Kong and on the mainland over the next six months - despite rapid rent rises that have forced some retailers to close their stores.
Shanghai-born Redmond Yeung, president for greater China at Gap, told the South China Morning Post in an exclusive interview that he aimed to open 20 more stores in Hong Kong and on the mainland over the next six months, which would bring its total number of stores in China to 45.
Gap is joining a new wave of expansions by international brands in Asia, and China in particular, including Abercrombie & Fitch, Burberry and MaxMara.
It comes at a time when a slow economic recovery in the United States and a worsening debt crisis in the euro zone have forced Western consumers to tighten their spending.
Last week, Abercrombie & Fitch launched its first store in Hong Kong's Central district, where the American fashion label agreed to pay more than US$1 million in monthly rent for its store.
"This [China] is a market for us in terms of international expansion. It's a cornerstone market where Gap must be," said Yeung, who held senior positions at American retail giant Best Buy and fashion firm Ports before he became the top boss for China at Gap in early 2010.