Gap targeting 50 new stores as chain expands

Clothing brand Gap plans to open about 50 new stores in China this year, as its local operator Baozun Inc accelerates expansion to sustain double-digit growth in the world's second-largest apparel market.

The new outlets will be rolled out through a hybrid model combining directly operated and partner stores, in line with Baozun's asset-light strategy, Ken Huang, president of brand management at Baozun, said during a recent earnings call.

"We are accelerating our store opening efforts to build on this momentum," Huang said, adding that the company expects to maintain strong growth into next year.

Baozun opened seven Gap stores in the fourth quarter, bringing total new openings for 2025 to 29, and lifting the brand's store count in China to 164 by year-end. The company said it is confident of sustaining double-digit year-on-year revenue growth for the Gap business in 2026.

Gap China, which Baozun acquired in 2022, has regained expansion momentum over the past three years. Sales in China rose more than 20 percent in 2025, and the company is aiming to maintain that pace this year before accelerating to around 30 percent annual growth over the next two years, executives said.

The brand's recovery is also underpinning Baozun's broader push into offline retail. The company, which operates brands including Hunter in China, opened five new locations for Hunter in the fourth quarter and expanded into higher-potential tier-two cities such as Qingdao, Shandong province.

Baozun ended 2025 with 177 stores across its brand management portfolio, noting that a broader physical network will improve supply chain efficiency and support long-term growth.

"China was a standout, with annual revenue surging — driven by new store opening and same-store sales rise, significantly outpacing the global market," said Cheng Weixiong, a fashion analyst and founder of Shanghai Liangqi Brand Co. "The company is sharpening its focus on denim, sportswear and children's wear, while scaling back discounting."

Gap's expansion comes as global fashion and apparel players upgrade their strategies amid intensifying competition and shifting consumer preferences. Domestic brands have been gaining share, while emerging labels break through, and consumers shift toward more personalized, experience-driven and value-oriented offerings.

Zara, owned by Inditex, is pursuing a global strategy of closing smaller outlets while doubling down on larger flagship stores. In China, that approach has translated into a push for high-visibility locations and digitally integrated retail formats.

Last year, Zara opened a flagship store in Nanjing, Jiangsu province, spanning more than 2,500 square meters. The company also completed renovating a major store on East Nanjing Road in Shanghai, and plans to open another store in the city this year.

Meanwhile, H&M Group reported modest global growth. In China, H&M said it is continuing to upgrade offline channels and invest in experiential store formats, with several core locations undergoing renovations. In December, South Korea's fast-rising fashion group Musinsa opened two stores in Shanghai. (source: China daily)