Regent St hails Banana Republic

Last updated at 10:47 29 January 2007


American fashion giant Banana Republic is opening its first European store in Regent

Street.

The company is part of the same trading group as Gap which has suffered poor sales in the UK over the past 12 months. Gap’s parent company hopes its higher quality sister store, which sells clothes for both sexes, will capture the imagination of British shoppers.

The shop is expected to open early next year.

Its most direct competitors will include catalogue company Boden and high street chains such as Reiss and Hobbs.

Best-selling Banana Republic pieces this season include women’s lightweight wool suits, priced at $198 (£100) for the blazer and $98 (£50) for

trousers. The brand also offers lines for women in petite and tall sizes, a wide range of accessories such as leather handbags, beauty products and even candles.

The announcement of the opening comes a few

weeks after Gap Inc’s global December trading figures showed revenue falling by four per

cent to $2.34 billion (£1.2 billion) with like-for-like sales down by eight per cent.

Dresses from a diffusion line created by designer Roland Mouret ended up in the Christmas sale with the prices slashed by more than half.

Earlier this month, the San Francisco-based firm, which during the Nineties represented

definitive laidback American style, reacted by calling in Goldman Sachs to look at strategies for improvement.

A possible sale of the company has not been ruled out. Stephen Sunnucks, president of Gap Inc. Europe, said the firm had high hopes for

Banana Republic in London.

"With its affinity for fashion and luxury products, the United Kingdom has the potential to be a strong market for Banana Republic and our customers in Europe," he said. "This is an

exciting first step for Banana Republic in the UK."

The firm was founded in 1978 as a two-store safari and travel-themed clothing company.

Gap Inc, which owns several clothing brands, acquired Banana Republic in 1983 and rebranded it as a mainstream clothing retailer.

It has more than 400 stores in the US and two dozen more in Canada and has proved popular

with British holidaymakers.

A spokeswoman for Gap Inc said: "For years we have had people in the UK, especially in London, asking us to open a store here.

"Banana Republic as a brand has an amazingly high

recognition considering it has only got stores in America and, for the past 12 months, Canada

and Japan. Initially we will be opening the branch in London and then assessing the results."

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