Gap report: Focused on international, online growth
San Francisco Gap announced Thursday that a three-to-five year strategic plan that calls for expansion into China and Italy this year, as well as online growth initiatives will boost revenues significantly. The retailer said it expects international and online sales to grow to 25% of its revenue by fiscal 2013, compared with 12% of revenue in 2009.
The announcement preceded its investor meeting, which runs throughout Thursday morning.
"We're making the investments necessary to shift the balance of revenue over time to come increasingly from our online and international businesses," said CEO Glenn Murphy.
The stores in China and Italy will open by the end of 2010.
Gap, which operates namesake stores as well as Old Navy and Banana Republic, also said it could open Old Navy stores outside North America, and plans to sell clothes online in Japan beginning in 2011.
The retailer also announced it plans to double the number of its franchise stores to 400 by 2015. Other top initiatives include: Old Navy is rolling out additional store remodels, with the goal of completing 35% of its fleet by the end of 2011, and Banana Republic is refining its marketing and testing new store formats.