Older women are target for Gap's latest store idea

US fashion giant Gap is in the throes of establishing a chain targeting older women as it diversifies to drive profits.

The retailer is understood to be developing a mid-priced clothing chain aimed at 35- to 50-year-old women, Business Week reported.

Without confirming the initiative, a Gap spokeswoman said the retailer was researching and exploring prospects.

'We have said our growth will come from initiatives that could include extensions of our existing brands and new brands,' she said.

She added that head of international Andrew Rolfe was studying opportunities to open Banana Republic and Old Navy shops overseas, including the UK.