The Store WPP

The WPP Global Retail Practice

Gap in Santiago

5/3/2017

by The Store

The days of Multi-National Retailers dropping cookie cutter stores in new markets are dwindling. When The Gap launched in Santiago back in 2011, they were applauded for the flexibility extended in their franchise model. Their expansion continued the following year as they moved into Panama and Colombia. These optimistic growth strategies into new markets always carry risks. Changes in economic conditions and consumer spending patterns can quickly impact financial performance. While The Gap called out a big “Hello” to their new audience in Chile a few years back, the store was true to their US mall footprint. And that may have been exactly what Chilean shoppers wanted. US fashion brands have had a strong run in Latin America. But more and more we see retailers going into new markets with an embrace of the local culture.

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