Gap To Return To TV Ads, Expand Into China

ANNE D'INNOCENZIO

NEW YORK (AP) — The apparel retailer Gap Inc. on Thursday announced plans to return to television advertising in November for its namesake brand, after a two-year hiatus, and said it will continue to expand internationally.

The company will open its first Gap store in China next year, expand its outlet store presence abroad, and launch online businesses in Canada and the U.K., also in 2010. The retailer owns the Banana Republic and Old Navy chains in addition to Gap stores.

The goal now is to "gain and grow market share," said Glenn Murphy, chairman and CEO of San Francisco-based Gap Inc., in an address at the company's investors meeting, broadcast over the Web.

Murphy noted that its online business hasn't lost market share in five years. The company's Internet business has grown from $595 million in sales in fiscal 2005 to more than $1 billion in the latest fiscal year, company officials noted.

Gap also said its Old Navy division plans to roll out a new store design in about 50 locations by the end of the year. Old Navy, which had once dragged down the overall chain, is now enjoying a sales rebound after its merchandise was retooled to cater to frugal moms.