NATIONAL: Gap Inc.’s local licensee has confirmed Australians will very likely see Old Navy stores on local soil once the casualwear brand's recently launched international expansion plan hits full throttle.
The value-orientated label is set for imminent expansion beyond its current North American confines following the decision of parent company Gap Inc. to go global with Old Navy bricks and mortar stores.
While Gap Inc.'s local licensee Busby Holdings Australia revealed it had not yet acquired the licence to Old Navy, the firm's managing director Simon Nankervis confirmed his company has first rights to the licence and is in "early discussions" with Gap Inc. about Old Navy’s rollout.
“We have a very real interest in pursuing our relationship with all of the Gap brands including Old Navy," Nankervis said.
“At this stage Gap [has] only decided its initial international launch plan which will be company-owned territories. Australia is on the international expansion model but no firm date for the launch has been set at this time.”
Gap Inc. revealed last month the first international Old Navy store will open in Japan in 2012. The rationale behind the brand expansion lies largely in Gap Inc.'s online sales, with the company revealing Old Navy was the top performing brand in 50 of the 90 countries serviced by Gap Inc.'s online stores.
Gap Inc. CEO Glenn Murphy said Old Navy had cemented a family-focused customer base over its 17-year history.
“We now have the international infrastructure in place to launch Old Navy in a cost-effective manner in new markets through our range of channels,” Murphy said.
Back on home soil, Nankervis reflected on the eight months of trade since Busby Holdings opened the first of two Australian Gap stores.
“During the start-up phase we over-traded against our stock targets and as such this meant there was a period where we were unable to meet the consumer demand for product or sizing,” Nankervis said. “However, we are now through this phase and looking forward to consolidating the current business.”
He confirmed Busby will open more Gap stores but said further openings are contingent on securing “appropriate” retail spaces.
Busby has also been in possession of the local licence for Banana Republic for over 12 months, with store openings for that brand planned too.
“[B]ut once again this is also dependent upon the appropriate space becoming available for Banana Republic,” Nankervis said.
Busby Holdings is a brand and retail management firm that currently oversees Australian operations for the likes of Aldo and Guess.
Erin O'Loughlin