NATIONAL: International retail giant Gap has put an end to industry speculation it will enter the domestic market.
The US-headquartered operation has issued a formal media release confirming it has entered into a franchise agreement with Brand Republic, a subsidiary of Busby Holdings Australia. Brand Republic has been granted exclusive rights to operate Gap branded stores locally, with the first site set to open in Melbourne's Chadstone shopping centre in the "fall of 2010".
Gap vice president of strategic alliances Stefan Laban said the move was part of a broader global strategy, having franchise agreements in place for a total of 24 countries on four continents.
“With Australia, we’re extending our international presence to a whole new continent,” he said. “The country has a strong retail sector and an underserved market of consumers who appreciate the casual, American style that Gap represents.
"We’re confident that we have the right partner to help us bring Gap to consumers in Australia, given their success bringing other international brands to the Australian marketplace.”
Under the terms of the agreement, Brand Republic will purchase merchandise from Gap and must adhere to the company’s quality standards.