Gap clocks sales worth Rs 23 lakh daily on average in June

American clothing brand Gap sold apparel and accessories worth Rs 23 lakh daily on average in June in its first month of operations in India...
Gap clocks sales worth Rs 23 lakh daily on average in June
American clothing brand Gap sold apparel and accessories worth Rs 23 lakh daily on average in June in its first month of operations in India, surpassing every other retailer in the country in terms of sales per square foot while ranking behind arch rival Zara's store in the same location in total sales.
 
Spanish brand Zara clocks sales of about Rs 9 crore a month from its store in south Delhi's Select City Walk mall, where Gap has opened its first store in India in partnership with Arvind Lifestyle Brands. Gap sold goods worth about Rs 7 crore from its 9,500 sq ft store, translating into Rs 242 per sq ft per day, two executives with knowledge of the matter said. Zara's sales amount to Rs 180 per sq ft per day at its 16,500 sq ft first store in the country that it opened in the mall five years ago, they said. "The response has been better than what we had anticipated and it was spread across men, women and kids' merchandise. We, however, cannot divulge sales details as it is too early," said J Suresh, managing director of Arvind Lifestyle Brands, which plans to open more than 40 Gap stores in India over the next few years.
 
Gap had earlier said that it was targeting Rs 500 crore of annual sales in three years, with Rs 60 crore from just the maiden store in Delhi in its first year. Experts said while initial sales of Gap were substantially high by industry standards, the company's per store sales might drop once it opens new stores in not so prime locations and the novelty factor wears off.
 
Gap was introduced to India on a wide scale in 1998, when actor Shah Rukh Khan wore its sweatshirt in the film Kuch Kuch Hota Hai. The $16.4 billion apparel brand, known for its hoodies, spent nearly Rs 4 crore on outdoor campaign 'Hello Delhi' alone, in line with its global strategy of greeting the city when it opened its first outlet. Experts said it will be a challenge for Gap to sustain sales momentum.
 
"This clearly shows there is still a dearth of popular global brands in India. But the sales could slow down once they open more stores and the initial scarcity value fades away," said Ruchi Sally, director of retail consultancy firm Elargir. Zara had hit the headlines five years ago when it sold merchandise worth a record Rs 90 lakh on its first day.
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