Gap, the well known American clothing brand managed to reach around Rs 23 lakh of daily average sales with apparel and accessories in June. This is the sales figure that the firm received in the first month of commencing its operations in the country. The brand has surpassed every other retailer in India with its sales per square foot. However, it is still ranking behind its challenger Zara in the same location in terms of total sales.
Zara is a Spanish brand and the sales figure achieved by the brand is Rs 9 crore per month on its store in the City Walk mall in southern Delhi. This is the same place where Gap has opened its very first store in India alongside Arvind Lifestyle Brands.
On a monthly basis, Gap has sold merchandise worth Rs 7 crore from its 9,500 square feet store. This is Rs 242 per square feet per day. As per sources familiar with the sales of Zara, the brand has managed to sell Rs 180 per square feet per day at its store measuring 16,500 square feet. This store was opened by Zara in the mall almost five years back.
Previously, Gap has mentioned that it was aiming to achieve an annual sales of Rs 500 crore in the next three years with Rs 60 crore of sales only from its maiden store in the national capital in the first year.
Though the industry standards set by Gap were high, the brandās per store sales might take a plunge as it will open new stores in not so prime locations. Also, its reputation as the novelty factor will get worn out.
Gap has launched in India on a wide scale in 1998, and the brand is known for its hoodies. The industry experts are expecting the brand to find it challenging to sustain the sales momentum.
