Gap Cuts India Sourcing

[OhioChick]

Source: Times of India

10 Sep 2007
CHENNAI/BANGALORE: International lifestyle brand GAP is learnt to be slowing down sourcing from India, adding to the woes of Indian exporters who are reeling under the appreciating rupee.

The reason for this development is not clear, but it is said that GAP is going through a major international makeover with a new CEO. The Indian sourcing by the company is around $1 billion.

"We were among the last of the suppliers to be empanelled by GAP. We did not get orders from them for some time. Informally we were told this is due to some global re-adjustments. We had to fill up the capacity which we set aside for GAP with orders from VF Corporation. We were told that they (GAP) were reducing their India exposure," sources in Celebrity Fashions told TOI.

According to global media reports, GAP is undertaking major re-adjustments, including cost cutting and efficiency improvements to boost profitability. Its sales have been flat since June 2004. The newly appointed CEO, Glenn Murphy, is trying to turn around the company by laying off workers and reducing inventory at stores. Design and fabric changes are also on the anvil.


Read more: http://timesofindia.indiatimes.com/GAP_cuts_India_sourcing/articleshow/2353775.cms

[xchrom]

1. interesting. -- i wonder where they will go and

are they cutting the numbers they contract for?