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Gap to Spend $400 Million on Stores

Mon February 04, 2002 - National Edition
Construction Equipment Guide


Clothing retailer Gap Inc. said on Tuesday it expects to spend $400 million on capital expenditures in the current fiscal year, as the company looks to open new stores and revamp existing ones.

San Francisco-based Gap, which increased store space by about 16 percent in fiscal year 2001, said it anticipates increasing net square footage by about 3 percent in fiscal year 2002, according to a filing with the Securities and Exchange Commission.

Gap, which has suffered from a recent sales slump and faced criticism of its product lines, spent $1 billion on capital expenditures in the last fiscal year.

Of the $400 million to be spent in fiscal year 2002, the firm earmarked about $210 million for store capital, with $145 million for new stores and $65 million for store remodeling. The firm expects to spend about $130 million on information technology.

Gap also disclosed in the filing that it has granted hundreds of construction and improvement projects in the last three years to a company owned by the brother of Chairman Donald Fisher and the brother’s family. The firm, called Fisher Development Inc., acted as general contractor for 282 projects in fiscal year 2001, 675 in fiscal year 2000 and 547 in fiscal year 1999.

The agreement with Fisher Development is reviewed annually by the Audit and Finance Committee of Gap’s board, Gap said.




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