San Francisco—Gap Inc. is looking to become less dependent upon the (unpredictable) U.S. market, which accounts for about 84% of all its sales.
Speaking last week at an investor’s day, Jeff Kirwan, president of Gap Inc.’s China business, said the company expects its sales in China to triple in the next three years to $1 billion, making it its second largest market
Less Reliant on U.S. Sales
In fact, the retailer has already made inroads though it lags some European rivals there.
Last year, Gap Inc. opened 34 Gap stores in China, bringing its total there to 81. It will open about another 30 this year. The company recently opened its first Old Navy store in China. “We can push Old Navy deep into China,” said Kirwan, noting that its stores offer an authoritative point of view on American styles that Chinese shoppers apparently seem to like.
Meanwhile, North American sales have cooled of late at Gap Inc’s three major brands. Companywide, comp store sales rose 2% last year.
Gap Inc. also said it would expand a service that allows shoppers to reserve items online for pick-up in-store to all of its Gap stores this year, as part of efforts to blend its e-commerce and store businesses.
Gap. Inc. will also start testing a feature allowing shoppers to order items online while they are in a store.