GAP is no longer the largest clothing retailer in the world after it was overtaken by Spanish rival ZARA.

While ZARA has been expanding rapidly for the past few months, US-based GAP was suffering from the slowing down of US economy, with its customers in America cutting down spending.

GAP was founded in San Francisco, California almost 40 years ago in 1969. It operates more than 3,000 stores worldwide with major presence in United States, United Kingdom, Canada, Japan, Korea, Malaysia, Philippines, Singapore, Indonesia and so on. GAP employs more than 150,000 staff throughout the world.

Its competitor ZARA was established about 5 years after GAP’s inception with its first shop opened in A Coruna, Spain. The company’s strength lies with its ability to develop and launch products within weeks, compared to the normal, industrial standard of few months.

ZARA produces 10,000 new designs every year, offering its products in Spain, France, UK, Mexico, Japan, Brazil, US, Chile, Panama and many other countries. And contrary to GAP, which spends overwhelming budget for marketing, ZARA adapts zero advertising approach and roll over its revenues to open more outlets.