The fast fashion chain says it is committed to long-term development in China despite the fact that more than 10 stores have been closed this year.
Photo from CFP
By CHEN Qirui
US clothing retailer Gap has been closing stores in more than 15 cities since this year.
“The fashion industry is changing rapidly, especially in China, so Gap regularly reviews its business strategy and model, including store mix, and makes adjustments according to the situation,” read a press release by Gap’s China headquarters.
The company told Jiemian News that it would open a new store in Qingdao in August and was committed to the long-term, sustainable development in the Chinese market through cooperation with various platforms and third parties.
As one of the first fast fashion brands to enter the Chinese market, Gap opened a large number of stores in core business districts in the early days. But the brand has paid little attention to local tastes, and prices are often higher than other fast fashion brands.
In 2021, Gap Group recorded revenue of US$16.7 billion (113 billion yuan), up 21 percent from 2020, but an increase of only 1.8 percent from 2019. The net profit was US$260 million, turning losses into profits compared with 2020, but still short of the US$350 million seen in 2019.
