Retailer remains committed to UK and Europe operation
Gap has categorically denied reports that it will pull out of Europe and the UK if its European range fails to set the tills alight this autumn.

The US fashion retailer told Retail Week that it remained committed to its UK and European operation.

Gap said in a statement: 'The company's board of directors fully supports the European strategy and is committed to the European market.'

The retailer has been under increasing pressure to halt sliding sales. European president Stephen Sunnucks has hung his turnaround strategy on creating European-focused ranges and has set up a design office in London. It is hoped that the ranges, which are more fashionable than Gap's core offer in the US, will attract European shoppers back to the retailer.

Gap is also planning to launch its Banana Republic chain in the UK next year, suggesting it is committed to the market in the medium term. It also unveiled a radical new store fit in Brent Cross earlier this year.

However, Gap recently axed 90 jobs at its European head office as part of a cost-cutting drive.