Banana Republic Store

On Santa Monica's popular Third Street Promenade, where national chains frequently jockey for sites, the latest development is a new Banana Republic store. The chain already has a Third Street store, but it plans to convert a large Promenade building, a site formerly used by J.C. Penney, into a flagship store. The existing Banana Republic store is one of the chain's top stores, and the chain decided Santa Monica could support a larger store.

Wallpaper, a trendy 18-month-old magazine owned by Time Inc., has struck a deal with Banana Republic, a unit of Gap Inc., in which the retail chain will sell the publication in its stores. Founded in London, Wallpaper is the equivalent of Martha Stewart Living for young, urban jet-setters, with tips on places to eat, stay and shop in Sweden, Amsterdam, Paris and Tokyo. It is sold in 50 countries.

Justin Lowe considers himself among the growing number of "Banana Republicoholics." The 27-year-old New Yorker shops at the clothing and home furnishings chain at least once a month, recently adding a scarf and boxer shorts to his vast Banana Republic collection. "The stuff is good quality, sophisticated, but not too daring," Lowe said. Lowe and other stylish, urban professionals have helped Banana Republic become one of the country's hottest retailers.

Gap Inc., the largest U.S. clothing retailer, named Jack Calhoun, 43, president of its Banana Republic unit. Calhoun has served in the position on an interim basis since February. Banana Republic also started searching for a new design chief with the departure of Deborah Lloyd, 43, as of Oct. 19, San Francisco-based Gap said. Lloyd will be co-president of Kate Spade, a division of Liz Claiborne Inc.