Gap Stores To Open By Holiday Season

The Moscow Times:

At long last, Russian women won’t have to make an extra trip to France, Germany or Japan to dress American.

Gap Inc. said Tuesday that it struck a franchise deal with Turkish bank Fiba Holding to bring its popular Gap and Banana Republic brands to Russia.

Under the agreement, Fiba will open Gap and Banana Republic outlets over the next 5 years, Gap Inc., which is based in San Francisco, said in a statement. Financial details of the deal were not disclosed.

Fiba will open the first Gap stores this year, in time for the holiday season, the statement said.

Gap markets itself as offering ‘iconic American style, including T-shirts, hoodies [and] great-fitting pants.’

Banana Republic, which sells dressier and higher-end clothing, accessories and shoes, should open its first Russian store by late 2009.

Fiba Holding, Turkey’s ninth-largest bank, already operates Gap and Banana Republic franchises there and is described by Gap Inc. as a company with ‘a proven track record in franchise operations in Russia.’

The company has the franchising rights for British retailer Marks & Spencer, according to Fiba’s web site, with a total of 13 stores in the country by the end of 2007.

The current deal makes Russia the 17th country with Gap and Banana Republic franchises, the statement said.

Photo: Jay Mallin / Bloomberg.