Gap expands to South America

Pedestrians walk by a Gap store in San Francisco on May 19, 2011.</p>

Pedestrians walk by a Gap store in San Francisco on May 19, 2011.

Gap is making its South American debut tomorrow.

The U.S. clothing retailer is opening a store at the Parque Arauco Mall in Santiago, Chile. It plans to open a second store in Concepcion in November.

The company said it would also open Gap and Banana Republic stores in Panama and Colombia next year.

"With a nearly $6 billion apparel & footwear market, a retail sector that makes up 9.4% of the country's GDP, and a proven customer base interested in American style and brands, Chile represents a natural extension for our brands," said Stefan Laban, managing director of strategic alliances for Gap Inc.

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