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Gap Inc plans to focus on strengthening its distribution capability
Gap in the U.S: Local Profile, 2013 - a new company profile report on 2014-03-24 03:13:01
The world´s largest economy has been facing volatile economic growth following the recession in 2009. The US economy grew at a rate of 2.4% in 2010, which further slowed down to 1.8% in 2011 and recovered partly in 2012 to reach a growth rate of 2.2%. Due to these volatile conditions there has been a significant impact on the retail industry in the US. The growth in retail sales in the country has also been volatile since the recession, according to Conlumino´s new report: Gap in the U.S. Local Profile, 2013.

As a result, many retailers, including Gap, have been forced to alter their strategies. Gap is investing in strengthening its distribution capacities at central locations, such as Middle Tennessee, where the retailer plans to expand its distribution center. Additionally, the retailer plans to strengthen its online presence with an aim to effectively explore the projected growth in online clothing sales in the US in the near term.

In FY2012, Gap US operated 2,429 stores, an increase of 0.1% from the previous year. Overall, the company´s store count increased at a CAGR of 1.9% during the period 2008–2012.

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