[Kabar-indonesia] 20 Gap, Banana Republic stores to open in Indonesia [2 reports]

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also: Gap, Banana Republic stores to open in Indonesia from next year

FJ Benjamin To Open Gap Stores In Indonesia

By Aaron Back

SINGAPORE, OCtober 3 (Dow Jones) -- Gap Inc. (GPS) and Singapore
retailer FJ Benjamin Holdings Ltd. (F10.SG) said they have extended
their Asian franchise agreement to Indonesia, with 20 Gap and Banana
Republic stories planned for the world's fourth most populous country
by 2011.

FJ Benjamin will open 15 Gap, BabyGap and GapKids stores in the
Indonesian cities of Jakarta, Surabaya, and Bandung, as well as
tourist center Bali, and five Banana Republic stores in Jakarta and
Surabaya, the retailer said in a statement Tuesday.

Jakarta, Indonesia's capital, will have the country's first Gap and
Banana Republic stores in March 2007. This is in addition to 30 Gap
and Banana Republic stores planned for Singapore and Malaysia in the
next four years.

"The Indonesia market for Gap products could be even larger than
Singapore and Malaysia combined due to the large population," FJ
Benjamin Chief Executive Nash Benjamin told Dow Jones Newswires.

Indonesia's population of about 245 million is the largest in
Southeast Asia and the fourth largest in the world.

The Singapore retailer said in August that the stores in Malaysia and
Singapore would provide a significant boost for revenue and profit but
didn't give a timeframe.

FJ Benjamin's net profit for the full year ended June 30 more than
doubled to S$10.2 million, helped by sales growth of 29%.

At 0350 GMT, FJ Benjamin's shares were up 1.7% at S$0.605 on
volume of 1.38 million.

FJ Benjamin signed its first franchise agreement with Gap in January
to operate Gap and Banana Republic-branded stores in Malaysia and
Singapore.

The San Francisco fashion retailer operates about 3,000 stores in the
U.S., the U.K., Ireland, Canada, France and Japan.

But prior to teaming up with FJ Benjamin, Gap had no outlets in Asia
outside Japan and had never worked with a franchise partner to operate
its stores. The first Gap stores in Asia outside Japan will open this
month in Singapore and Malaysia.

Benjamin said he hopes to "take the relationship further" and open
stores in more Southeast Asian nations such as Thailand.

He believes Gap will use the franchise strategy with other partners to
expand into other new markets in Asia and the Middle East.

"Up to now they have only been working with themselves and their
subsidiaries," he said.

"But they realized that if they want to reach other markets and
smaller markets they can't do everything themselves, and that is why
they are adopting the franchise model."

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Gap, Banana Republic stores to open in Indonesia from next year

JAKARTA, October 3 (AFP) -- Singapore's FJ Benjamin, a franchise
partner of US specialty retailer Gap Inc, said Tuesday it plans to
open 15 Gap, BabyGap and GapKids stores and five Banana Republic
stores in Indonesia by 2011.

The company said in a statement that the first Gap and Banana Republic
stores will open in Jakarta in March next year, followed by the
remainder opening in Surabaya, Bandung and on the resort island of
Bali before 2011.

Apparel retailer Gap owns the Gap, Old Navy and Banana Republic brands.

"There is a significant amount of important retail centre development
in the market and a growing presence of international lifestyle
brands, such as Gap and Banana Republic," Art Peck, a vice president,
said in the statement.

The move follows the signing of an agreement between FJ Benjamin
Lifestyle Pte Ltd, the Singapore subsidiary of FJ Benjamin Holdings,
and GPS Strategic Alliances LLC, a wholly owned subsidiary of Gap Inc.

Similar agreements were signed in January this year for Singapore and 
Malaysia.

Gap Inc has more than 3,000 stores globally.

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Joyo Indonesia News Service
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