Why Is The Gap Inc. (GPS) Investing South of the Border?

Mexico also presents an easier point of international entry for the company. Uruguay had to act as a sort of testing ground for international sentiment, and gave The Gap Inc. (NYSE:GPS) a chance to learn the market before it opened a location in Paraguay. Mexican consumers are more closely tied to American tastes, and other companies have already made the push, including H&M, which is the second-largest apparel retailer in the world.

The Latin American push is good news for The Gap Inc. (NYSE:GPS) investors, who should see a profit from the new exposure and strong margins. The plan also provides a good counterbalance to the focus that so many retailers have placed on Asia and China, in particular. I’ll be watching for more expansion as the brand catches on, especially in Mexico, where Gap already has some presence.

The article Why Is Gap Investing South of the Border? originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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