Gap Inc. to open in the Philippines

SAN FRANCISCO Gap Inc. announced Tuesday that it is partnering with the Rustan Group of Companies to bring the Gap and Banana Republic brands to the Philippines. Under a franchise agreement, Gap Inc. plans to open approximately eight Gap stores and four Banana Republic stores throughout the country.

The first Gap store is expected to open by the end of this year, and the first Banana Republic stores by spring 2008. All stores are scheduled to be open by 2012.

"The Philippines represents a natural market for Gap Inc. to expand its international presence," said Ron Young, senior vp of international strategic alliances for Gap Inc. "The country has a strong, steadily growing economy, and consumers in this market have a great interest in iconic apparel brands such as ours."

Gap Inc. reported that the Rustan Group will hold exclusive rights to operate Gap and Banana Republic stores in the Philippines. In addition, the company said tha the Rustan Group 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.