U.S. apparel retail giant Gap is evaluating options for a potential sale of its mainland China operations, Bloomberg reported March 9, citing sources.
Gap is discussing options with advisers and has been in contact with potential buyers to assess their interest in acquiring Gap’s China business, people familiar with the matter said.
Gap representatives declined to comment on the matter, however, saying that discussions are still in the early stages and that Gap may continue to maintain its mainland China operations.
Gap entered the mainland China market in November 2010, setting up its Greater China headquarters in Shanghai’s Jing’an district. Its products cover a range of demographics including adults, children and babies, making it the first U.S. retailer to offer apparel to Chinese consumers in a single store format.
Currently, Gap Group has nearly 200 stores in Greater China. In addition to physical stores, consumers can also purchase Gap products through the official Gap Tmall flagship store and the official WeChat mini-program.
Gap Group’s casual fashion brand Old Navy (which entered mainland China in 2014) had announced that it would fully withdraw from the mainland China market and focus more on its North American business after Gap scrapped its plan to spin off the Old Navy brand as an independent public company last year.
According to data compiled by Bloomberg, the U.S. remains Gap’s largest market, while revenue from Asia continues to shrink, accounting for only about 5% of total turnover.
Founded in 1969 in San Francisco, Gap Group is known worldwide as a synonym for classic Americana. The group owns well-known apparel brands such as Old Navy, Gap, Banana Republic, Intermix, Athleta, Hill City and Janie and Jack.
Since November 2018, a number of foreign fast fashion brands have announced their store closures and withdrawal from the mainland China market, including the well-known American clothing brand Forever21, the British fashion retail giant NEW LOOK, the “sister brand” of Spanish fast fashion brand ZARA, Bershka and Stradivarius.
In September 2020, Dutch fast fashion brand C&A sold its mainland China business (C&A China) to Beijing-based private equity firm Zhongke TongRong.
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