International Trade: Discussion of International Retailing
GAP Inc.'s International Growth Strategy
GAP Inc. is one of the world's leading retailers in children, women, men's clothing and care products under the Intermix, Athleta, Piperlime, Old Navy, Banana Republic, and GAP brands. It currently operates over 3,000 stores scattered across 90 countries. GAP Inc. has increased its international presence through three key strategies -- brand extensions, acquisition of smaller companies, and building of physical stores/increasing the number of franchise-operated stores in promising markets.
In 2013, GAP Inc. boosted its presence in North America, particularly Mexico and Canada, through its $130 million acquisition of New-York-based firm, Intermix, a retailer in women's accessories, clothing and apparel (Gap Inc., 2013). With this acquisition, GAP Inc. added 32 boutiques scattered across the U.S., Canada, and Mexico, together with an e-commerce site for luxury brands and an additional brand to its portfolio. This followed an earlier acquisition of Piperlime, and Petaluma-based Athleta Inc., which at the time of acquisition had around 35 branches scattered across different countries in North America. In 2013 alone, the company opened 37 new GAP stores in China, and 6 Intermix and 30 Athleta stores in the U.S. Brand extension...
In October, 2014, for instance, the company announced its plan to extend the Old Navy brand into Asia, particularly Saudi Arabia, Qatar, Kuwait, and the UAE. Robert Frank, the brand's Executive Vice-President, also announced that the company would be opening its first franchise-operated Old Navy stores in the Middle East in 2015 (Vault, 2015). In March, 2014, Old Navy opened its first stores in the Philippines and Japan. For the first time, the company's growth in Asia (230 stores) surpassed its growth in Europe (208 stores) (Vault, 2015).
From its end-of-year announcement in December 2014, the company plans to add more branches in China and Europe, as well as in Africa, and Latin America, specifically Panama, Colombia, Chile, Uruguay, and Brazil. In its European Tour in 2010 and 2011, the company opened company-owned and franchise-operated branches in Rome, Milan, London, and Paris; and in late 2012, a standalone store in Mexico City.
Part Two: Trade between Mauritius and the U.S.
Mauritius last conducted its trade policy review in 2008; since then, efforts to implement relevant reform to the international trade sector have been ongoing. Border protection is, however, still relatively high, and custom duties are still applied based on…
