year 2001 saw a representative slow
growth of the more established Banana Republic stores into Canada with 3
new retail locations established, where as Old Navy expanded into Canada
for the first time with 17 new locations established. (Gap Inc. Annual
Report, 2001, Pg. 12) The differences between the two are representative
of the relative newness of the Old Navy venture. Old Navy was created in
1993 by Gap Inc. to answer for the increased competition that the other Gap
lines have gotten from discount providers, and even in a challenged economy
Old Navy has largely been a success, only recently showing slower growth as
the post 9/11 recession continues its hold on retail markets.
Comparatively, the fiscal year 2002 saw the establishment of 17 new Old
Navy Locations within Canada bringing the total to 28 while Banana Republic
opened no new stores in Canada in 2002 and ended the year with the 16
already established there. (Gap Inc. Annual Report 2002, Store Growth, pg.
5) This is a comparative difference that is statistically equal to the
percentage of total locations each brand has within the US, Banana
Yet, the parent organization Gap Inc and its namesake brand Gap has
expanded in the international retail market, quite substantially as each
division or country has its own subsidiary brand for the Country it retails
within, all collectively called Gap International. Globalization will also
be addressed in association with issues surrounding ethics of international
outsourcing, as all three of the major brands operated by Gap Inc. have
established international sources for both raw material and labor
production of the goods they provide to the consumer. This trend is far
from new but the kinds of changes that have occurred with regard to ethics
are new and Gap Inc. is attempting to lead the way in the retail clothing
industry with ethical globalization. Their number one s...