Gap is preparing to add 50 new shops in mainland China in 2026, with openings planned across tier-one to tier-three cities.
Vincent Qiu, chairman and chief executive of Baozun, the company that runs Gap’s business in China, told Bloomberg TV that the retailer also intends to return to Hong Kong later in 2026.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Qiu said: “In the coming three years, we are ready to accelerate the business and scale it to a bigger size.”
The expansion comes after the brand reached breakeven on a quarterly basis for the first time in the most recent quarter.
Qiu added that the first quarterly breakeven result for Gap China “means that our new model is now working, finally”.
Baozun took over Gap China in late 2022 and has expanded the store network over the past three years. The chain had 164 locations in 2025 after opening 29 new stores.
Under a franchise arrangement, Baozun operates the Gap brand in China through both physical retail and e-commerce.
On an earnings call on 25 March, Baozun said sales increased by more than 20% in 2025. It also outlined an aim to keep growth at the same level in 2026, before targeting a 30% growth over the following two years.
Qiu added that China’s consumer market is recovering “a little”, and said Q1 sales continued the stronger performance seen towards the end of 2025.
Baozun said the progress at Gap China has also increased its appetite to take on additional labels.
The company, which also manages the Hunter boot brand in China, said it has “a strong pipeline” of potential new partnerships, according to Qiu.
Separately, Gap formed a partnership with apparel group Fashionata to introduce the brand in Australia. The deal will see Fashionata roll out Gap via a combination of national retail distribution and digital channels.
Gap said: “The launch in Australia reflects Gap’s continued focus on international growth through strong local partnerships that bring iconic brands to life in culturally relevant ways.”
Fashionata will oversee distribution and market development for Gap in Australia, covering physical retail and digital operations, to deliver an omnichannel offering tailored to local customers.
