Gap plans to open 50 China stores, return to Hong Kong in 2026

HONG KONG – Gap plans to open 50 new stores in mainland China in 2026 after breaking even for the first time last quarter, as the clothing retailer’s local operator looks to boost growth over the next three years.

New stores will open across tier-one to tier-three cities in the world’s second-largest economy.

The company also plans to reopen stores in Hong Kong later in 2026, Mr Vincent Qiu, chairman and chief executive of Baozun, which operates the American brand in China, said in an interview with Bloomberg TV on March 26. 

“In the coming three years, we are ready to accelerate the business and scale it to a bigger size,” Mr Qiu said.

Gap China’s first quarterly breakeven “means that our new model is now working, finally”. 

Gap, acquired by Baozun in late 2022, has regained its expansion momentum over the past three years, with its store count reaching 164 in 2025 after 29 new openings.

Sales rose more than 20 per cent in 2025, and the company aims to maintain that pace in 2026 before accelerating to 30 per cent growth over the next two years, it said on an earnings call on March 25. 

Baozun’s turnaround of Gap China underscores how handing operations to a locally attuned partner can revive global brands in the country, even as consumer demand remains uneven.

Foreign chains from Starbucks to Burger King have increasingly pursued similar partnerships or franchise models in recent years, seeking sharper pricing, faster product cycles and closer alignment with local tastes.

The strategy is gaining traction as China’s retail market grows more competitive – and costly – for global firms to navigate alone.

China’s consumer market is recovering “a little”, Mr Qiu said, adding that first-quarter sales extended strong growth from late 2025.

Gap’s performance has also given Baozun confidence to manage more brands.

The company, which manages the Hunter boot label in China, has “a strong pipeline” of potential additions, Mr Qiu said. BLOOMBERG