Gap has New Plans for Athleta and Janie & Jack

Gap Inc. announces that the brands Athleta and Janie & Jack will be open for franchising outside the U.S.

Earlier, the company has already licensed its brands Gap, Old Navy, and Banana Republic to third-party partners from 40 countries around the world. The very first Gap franchise shop was opened in Singapore in 2006, after which the network began to expand actively. In the last three years alone, 100 franchise points have been opened. In the U.S., all stores are still owned by the company.

The franchise model is traditionally widespread in the fast-food industry. Such companies actively use it as McDonald’s and Subway. This approach also contributes to the very rapid growth of networks. This is where Gap Inc. is going to play, hoping to start active promotion of Athleta and Janie & Jack at the international level.

The company has individual plans for the countries of Central America and the Caribbean, where its products are not represented yet. In this region, as well as in some others around the world, there are nuances of corporate culture and interaction with government agencies, which are not always clear to foreigners. For example, for Gap, the franchise model is the easiest and most direct way to reach these markets.

Also, according to the company, it has “great opportunities” for franchising business development in the European and Asian markets.

Over the last quarter, Gap Inc.’s sales fell by 2%, and its share price fell by 25%. The company now faces intense competition from Zara and H&M, which have recently shown very rapid growth. and Janie & Jack