Top US fashion retailer to take the gap in SA

US-BRANDED clothing retailer Gap has become the latest international clothing company to announce its intention to sell its merchandise in SA as global retailers look for new growth markets for their products.

Gap is the 41st largest retailer in the world, with $16bn worth of sales for the financial year to June 2006, according to consulting firm Deloitte Touche Tohmatsu and Stores magazine’s 2007 Global Powers of Retailing survey.

The retail giant is reported to be considering selling merchandise through an established South African retail partner in March.

Consumer business leader for Deloitte SA, Rodger George, said global retail companies were expected to turn to developing markets for growth as a result of limited growth prospects in developed markets.

Wenneni Investments CE Shane Jedeikin, who in partnership with the House of Busby opened the first Mango clothing store in Johannesburg in October last year, said a number of international clothing brands — including European high street brands — had shown “tremendous interest” in the South African market and were set to enter the country during the year.

The local market should be able to absorb and support all the new entrants as, “on a whole, people are becoming wealthier and Johannesburg has become the shopping hub of Africa,” he said.

Gryphon Asset Management analyst Abri du Plessis said the growing middle market accounted for the consistent growth seen in the consumer sector.