Gap Considers Withdrawal from China After 10 Years of Operation

[Image source= Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] According to a Bloomberg report on the 8th (local time), American apparel company Gap is considering withdrawing from the Chinese market after 10 years of operation.

Gap entered the Chinese market in 2010, expecting that rising incomes in China would lead to increased sales.

They joined Alibaba Group's shopping mall Tmall and at one point planned to independently list the Old Navy brand.

However, last year, amid the spread of COVID-19, they completely withdrew the Old Navy brand from the Chinese market.

Gap's fourth-quarter earnings report released last week fell short of Wall Street expectations. Gap stated that the impact of COVID-19 continues to affect their performance and announced plans to focus on the North American market going forward. They also said they would reconsider their European business strategy.

Bloomberg explained that the share of the Asian market in Gap's sales has been continuously decreasing and currently accounts for only 5%.