Banana Republic Grows in Japan

The first freestanding store will open on Aug. 25 in Fukuoka, with the other four shops planned for the major cities of Nagoya, Tachikawa, Hiroshima and Kawasaki. In Nagoya, Banana Republic is expected to open on Aug. 30 in Lachic, a shopping complex that houses major overseas brands and specialty stores.

The expansion in Japan is part of a strategy that Gap executives outlined to a gathering of financial analysts early last year. The Gap execs, saying that the company expected to open at least 50 additional stores in the UK, cited the launch of Banana Republic in Japan last fall as a significant step in that expansion.

Gap's strategy with Banana Repubic is to "position the brand in the premium segment, given the Japanese customers' strong affinity for American icon brands and luxury products," according to the company presentation. Gap also expects to expand to smaller countries, and has already announced plans for stores in some other Asian countries. One of its biggest potential markets is China, according to company officials, who are exploring opportunities to enter that country.

In addition to the Banana Repubic store openings scheduled for August, the other openings are scheduled for Sept. 6, Sept. 15 and Sept. 28 in Tachikawa, Hiroshima and Lazona, respectively. In Tachikawa the store will open in the Granduo area, a growing shopping area in a suburb of Tokyo, and in Hiroshima the new location will be at Hiroshima Tenmaya, a popular department store in the Chugoku area. In Lazona the new Banana Republic location will be in a new large-scale shopping center to open in this fall in Kawasaki, in the Kanagawa Prefecture.

Banana Republic opened its first stores in Japan in the fall of 2005, which were its first store locations outside North America. The eight stores that it operates in Japan are in Tokyo at Printemps Ginza, Roppongi Hills, Nihonbashi Coredo, Tamagawa Takashimaya SC, and Shinjuku Mitsukoshi Alcott; in Yokohama at Yokohama Landmark; in Nagoya at Hoshigaoka Terrace; in Kobe at the 45th in Kyu-kyoryuchi district.