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06/13/2007

Gap Inc. to launch in Turkey, Saudi Arabia

SAN FRANCISCO Gap Inc. today announced separate franchise agreements with retailers in Saudi Arabia and Turkey to introduce the Gap and Banana Republic brands to those markets. Over the next five years, Gap Inc.’s franchise partners –Fawaz Alhokair Group (Saudi Arabia), and Fiba Holding A.S. (Turkey) – plan to open a combined total of approximately 90 Gap stores and 20 Banana Republic stores throughout Saudi Arabia and Turkey.

The first Gap stores will open in each country by the end of this year, and the first Banana Republic stores are expected to open in each country by spring 2008. All stores are expected to be open by 2012. 

“Both Saudi Arabia and Turkey represent natural markets for Gap Inc. to expand its international presence,” said Ron Young, senior vp of international strategic alliances for Gap Inc. “Each of these countries has a strong, steadily growing economy, and consumers in these markets have a great interest in iconic apparel brands such as ours.”

Gap Inc. will leverage each franchise partner’s local operational expertise, and will provide access to Gap and Banana Republic’s clothing and accessories. In addition, each partner will hold exclusive rights to operate Gap and Banana Republic stores in their respective countries, will purchase merchandise from Gap Inc. or suppliers designated by Gap Inc., and must adhere to Gap Inc.’s quality standards to preserve the reputation of the Gap and Banana Republic brands. The franchise agreements were entered into separately between a subsidiary of Gap Inc., and each individual partner.