Gap to launch Banana Republic in the UK as it battles H&M

by Daniel Farey-Jones, Brand Republic 26-Jan-07, 09:00

LONDON - Fashion retailers Gap and H&M are each planning to introduce new store brands in the UK in a competition to win share in the premium market that will begin on Regent Street.

Gap Europe president Stephen Sunnucks yesterday said that Gap was bringing its US store brand Banana Republic to Europe and would open the first outlet in Regent Street in 2008. Banana Republic's focus is on quality, work-oriented clothing at a higher price point than Gap.

San Francisco-based retailer Gap, which also owns Old Navy, has never launched the brand in the UK before although it is widely available in the US and other parts of the world.

H&M, the second-biggest fashion retailer in Europe after Zara-owner Inditex, also chose yesterday to reveal it was to launch a more upmarket store called COS. The letters stand for Collection of Style and the first store will open in Regent Street next month.

There are a further ten COS stores in development in the UK, Germany, the Netherlands and Belgium.

H&M this week reported a 17% rise in annual profits to £1.1bn and a 12% rise in revenues to £4.94m, while Gap parted company with chief executive Paul Pressler after disappointing earnings over the crucial Christmas period.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.