These units will be the first franchised stores in the Gap portfolio. Singapore-based FJ Benjamin Holdings will operate the stores. The firm also operates stores under the names of Guess?, La Senza and others throughout the region.

FJ Benjamin is opening the first Gap flagship store in Southeast Asia in November. The 9,000-sf unit will be located in the Wisma Atria, in the Orchard Road shopping area in Singapore. Also in November the firm will open a Gap unit at Vivo City, a new retail development on Singapore's harbor. The first store in Malaysia is expected to open in October it the central area of Kuala Lumpur at the Lot 10 Shopping Centre.

Southeast Asia is not the only international market in which Gap is expanding. The retailer has signed a franchise agreement with retailer Al Tayer Group to open up to 35 Gap and Banana Republic stores in the Middle East by 2010.

The retailer currently operates about 3,000 units in the US, the United Kingdom, Canada, France and Japan. Gaps sales an earnings have slid as of late. For its most recent reported quarter, which ended April 29, same-store sales fell 9% year over year.