Gap Inc. to launch Fourth & Towne

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Forth & Towne — Gap's first new chain in a decade — aims to appeal to boomer women, who grew up with Gap, but with whom the store "lost touch," said Paul Pressler, president and chief executive at a meeting in San Francisco, which was broadcast on the Web.

With the over-35 group accounting for 39 percent of women's total apparel expenditures, this market represents a "sizable opportunity" for Gap, whose sales have been wavering, although profits have improved, boosted in part by cost-cutting.

Pressler told investors that the company — which operates stores under its namesake brand, Old Navy and Banana Republic — will unveil more details about the clothing this summer. But he said that the new store will offer a broad range of sizes, with a focus on fit, and assortments that serve a variety of occasions. The clothing will be priced between Gap and Banana Republic, he said.