Ian Ritter is national online editor forGlobeStRETAIL.com,
launching Oct. 7.

SAN FRANCISCO-Gap Inc. is launching a new chain next year.Following months of speculation about what the company has beenworking on, the locally based apparel retailer now says it willopen up to 10 new stores in two geographic regions that are aimedat the over-35 female. Gap says its new brand concept "is based onextensive consumer insight work done by the company over the pasttwo years across the $174-billion US apparel market." The companyis holding back additional details until the launch date drawscloser. The move comes amid the launch of new concepts by otherhigh-profile apparel retailers. In the last month, Chico's FASopened three Soma by Chico's lingerie stores targeting women overthe age of 35, and Abercrombie & Fitch is launching Reuhl,which will try to attract young professionals as opposed to itscurrent audience of consumers in their teens and early 20's."It's avalidation that this is where there's still competitive activity,"says Christine de Marval, a retail research analyst with New YorkCity-based Sidoti & Co. In the US there is 3.6 sf of retail percapita for teenagers, while women over 35 only have 0.7 sf butspend more per person, she says.Gap's competitors in the sectorinclude Ann Taylor, Chico's and Christopher and Banks, but themarket is so underserved that there is room for more chains, deMarval says. "There's still a lot of room for competition, so it'snot a zero-sum game," she says. "I'm not concerned this willincrease rivalry among the specialty players."But one retailanalyst who asked not to be identified says Gap is targeting thesuccess of the 450-store Chico's chain, which consistently postsdouble-digit, month-over-month same-store sales gains. "It's hardif you're in specialty retail to not notice how successful Chico'shas been," the analyst says. "I think [Chico's] makes everyonejealous."Gap currently operates three chains. Its namesake chain isthe largest, with about 1,700 units in the US, Canada, the UnitedKingdom, France and Japan. Old Navy operates just over 850 units inthe US and Canada. Its Banana Republic chain has about 450 storesin the US and Canada.