Banana Republic 2010 Annual Report Download - page 4

How should we think about Gap Inc.’s global opportunity?
Glenn: In 2006, we operated in eight countries and only sold products online in the United States.
Now, we’re in 31 countries with online sales available to customers in over 90 countries.
Managed by local teams in London, Tokyo and Shanghai, we have the infrastructure to
increase our share of the $1.4 trillion global retail market. Customers increasingly demand
access to our brands through a variety of channels. In response, we’ve aggressively added
Outlet stores to existing markets and opened in new markets with huge potential. We also
worked with our franchise partners to expand more rapidly around the world. We realize
this is still early days for us and we continue to put the foundation in place to support the
business. However, we are tremendously excited about the global runway in front of us.
Stephen Sunnucks, president, Europe and International Strategic Alliances: Over the past
five years, our European and franchise store base has more than doubled from 165 to 367.
Without a doubt, one of the most thrilling moments during my 30-plus years in apparel re-
tailing was when Gap and Banana Republic opened in Milan this year. In an atmosphere of
excitement and energy, droves of shoppers filled our stores in a city known as the center of
world fashion. Simultaneously, half-way around the world, our Shanghai-based colleagues
introduced Gap to China and made a lasting first impression. Our approach to managing
the business is matching the “global” resources of the company with the “local” experience
of our teams, and I believe it’s one of the secrets to our success.
Grace Wong, marketing leader for Gap China: Before launching in China, we invested
thousands of hours to really understand our new customers. Here, consumers shop as a
national pastime, using social media for style inspiration. These insights showed us the
huge potential for Gap’s American style. For me, this has been an unparalleled opportunity.
Moving my family from San Francisco to Shanghai was an easy decision. I think our first
marketing campaign, “Let’s Gap Together,” was captivating because we didn’t just export
an American brand – we integrated Gap into the Chinese culture.
Is growing in North America still important to your strategy?
Glenn: Absolutely. We have three very well established brands in Gap, Banana Republic and
Old Navy, along with two up-and-coming brands with huge potential, Piperlime and Athleta.
We understand the strengths of these brands, and I was encouraged that we grew our top
line sales in 2010. To execute with more speed and consistency, we integrated the Outlet divi-
sion with Gap and Banana Republic, and named Art Peck president of Gap North America.
Priorities for 2011: continue to modernize our fleet of stores; focus on attracting new
customers; maximize the fast product pipeline; and introduce more product categories.
Tom Wyatt, president, Old Navy: At Old Navy, our singular focus on our target customer,
Jennie, helped drive our solid performance, increasing comp for the second straight year.
Value, fashion and fun are critical for her. We brought our refreshed store experience to
about 250 stores by the end of 2010. I’m pushing the product teams, every day, to develop
more unique offerings, such as our successful licensed T-shirts for the family. Our new
marketing direction incorporates social media and music to attract more customers to
the Old Navy brand. We’re aiming to win and beat the competition, and it starts with
how we serve and delight Jennie.
Gap’s Milan entry set a 2010 opening-day
sales record.
With its Ginza store opening, Gap
showcases its largest store in Japan.
The innovative, remodeled Gap store in
Seattle is a global prototype.