Gap bucks retail headwinds with massive China expansion amid localisation drive

Gap’s plan for dozens of new stores and return to Hong Kong market comes as Ralph Lauren also posted a 40 per cent year-on-year jump in China sales in past quarter Amid widespread store closures by foreign fast-fashion players in China, US apparel brand Gap is defying industry headwinds. It plans to open 50 new stores in mainland China this year and return to Hong Kong by year’s end, following a localisation overhaul that has attracted more Chinese consumers. This expansion comes at a time when the world’s second-largest consumer market faces sluggish overall retail sales, with brands such as Zara and H&M scaling back their number of stores. With Gap having gone through a period of contraction and store closures, the American fashion brand is striving to rebuild its growth track in China. Since Chinese e-commerce operator Baozun took over Gap’s mainland China, Hong Kong and Macau operations in early 2023, Gap has pursued its “China-for-China” localisation strategy and recorded its first profit in the fourth quarter of last year. Gap posted 20 per cent same‑store sales growth in China for the first quarter, a record high.

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