Gap 
GAP is starting to look like a reopening growth story in China, with management signaling a more assertive expansion plan after hitting a key operational milestone. Following its first quarterly breakeven under Baozun Inc.’s ownership, the brand is preparing to open 50 new stores across mainland China in 2026, spanning tier-one to tier-three cities. Baozun Chairman and CEO Vincent Qiu indicated the model is now working after several years of restructuring, and the company is positioning the business to scale meaningfully over the next three years. The plan also includes reopening stores in Hong Kong later this year, suggesting a broader regional re-engagement.
The recent momentum appears to build on a steady recovery since Baozun acquired the China business in late 2022. Store count reached 164 in 2025 after adding 29 new locations, while sales increased by more than 20% last year. Management aims to maintain that growth pace in the near term before potentially accelerating toward 30% over the following two years. Qiu also noted that first-quarter performance has extended the stronger growth seen in late 2025, even as China’s consumer recovery remains uneven and gradual.
The turnaround could also reflect a wider shift in how global brands operate in China, where partnerships with local operators are becoming more common. Companies such as Starbucks Corp. and Burger King have adopted similar approaches, focusing on sharper pricing, faster product cycles, and closer alignment with local demand. Baozun’s execution with Gap may strengthen its ability to onboard additional brands, with management highlighting a growing pipeline. If sustained, the model could offer a more scalable path for international retailers navigating a competitive and increasingly complex Chinese market.
