Gap Combines International Operations; Taking Old Navy Overseas

Gap Inc. (San Francisco) announced that it will combine its international operations into one division, which will be run out of London.

Stephen Sunnucks, who joined the company five years ago, will lead the international division, which will bring together its company-operated and franchise stores across Europe, the Middle East, North Africa, Asia Pacific and South America. This amounts to about 530 stores across 30 countries, including eight of the world’s top 10 apparel retail markets.

“Our successful openings in China and Italy have given us further evidence that we have a strong game plan for entering and expanding into international markets through a unique combination of online, specialty retail, outlet and franchise stores,” says Glenn Murphy, chairman and ceo of Gap Inc. “Bringing our four international business units under the leadership of a proven global retail executive like Stephen allows us to leverage resources, operate consistently and grow the business at an accelerated rate.”

“Our distinctively American aesthetic has resonated very well, everywhere from Milan to Shanghai to Sydney,” says Sunnucks. “We have the flexibility to adapt our formats for each market so that we can gain a larger share of the $1.4 trillion global apparel retail market.”

Gap also announced that John Ermatinger, currently president of Gap Inc.’s Asia Pacific Region, will take on a new role establishing Old Navy Intl. Ermatinger will be tasked with opening Old Navy in Japan by the end of 2012.