Gap Defies Retail Downturn with 50-Store China Expansion Plan
SCMP · 1 SOURCESabout 1 hour ago2 MIN
Summary
US apparel brand Gap is defying the broader trend of foreign fast-fashion retailers retreating from China by pursuing an aggressive expansion strategy. The company announced plans to open 50 new stores across mainland China this year and return to Hong Kong by the end of 2025, following a comprehensive localisation overhaul that has attracted Chinese consumers and delivered record financial results.
Key Points
- Gap plans to open 50 new stores across mainland China in 2025, spanning first-tier to third-tier cities and the Tibet autonomous region
- The company will return to Hong Kong by year-end, having previously operated stores before restructuring
- Baozun, a Chinese e-commerce operator, assumed control of Gap's mainland China, Hong Kong and Macau operations in early 2023
- Gap achieved record 20 percent same-store sales growth in China during the first quarter of 2025
- The brand recorded its first quarterly profit in the fourth quarter of 2024 under the "China-for-China" localisation strategy
- Competitors Zara and H&M are scaling back their store counts in China's sluggish retail environment
Why It Matters
Gap's expansion signals that the Chinese market remains viable for foreign brands willing to commit to deep localisation, even as rivals exit. For Hong Kong, Gap's planned return represents renewed consumer confidence in the city's retail sector, which has struggled with reduced foot traffic since the pandemic .
Gap's expansion signals that the Chinese market remains viable for foreign brands willing to commit to deep localisation, even as rivals exit. For Hong Kong, Gap's planned return represents renewed consumer confidence in the city's retail sector, which has struggled with reduced foot traffic since the pandemic .