Gap'S Brand Old Navy3 Officially Withdrew From The Chinese Market On 1 June.

The Old Navy (OldNavy) is about to officially withdraw from the Chinese market. Recently, the official Tmall flagship store of the old navy of the Cape group brand has issued a closed shop announcement, saying its flagship store will stop selling products on February 15th and will be closed in March 1st. The official WeChat public number of the Old Navy also pushed a closed shop announcement, saying it plans to withdraw from the Chinese market due to the adjustment of its international business strategy. All offline and online stores are expected to be closed from March 1st.

It is reported that the Old Navy, founded in 1994, entered China in 2014. The brand has been highly regarded by the group and has been developing rapidly. In 2014, GlennMurphy, chairman and chief executive officer of Ge Pu Group, publicly stated that the Chinese market is an important part of the expansion strategy of the group. The group is confident that the Old Navy brand will take root in the Chinese market. In 2018, the annual sales volume of the Old Navy brand has surpassed the two brands of cap Pu and BananaRepublic of the Cape group, with an annual revenue of about $8 billion, accounting for about half of the group's total revenue. Last year, the Cape group announced that it would split the Old Navy into an independent listed company, but the scheme was halted by November last year. At that time, ArtPeck, President and chief executive officer of Cape group, abruptly resigned.

However, the Old Navy withdrew from the Chinese market as early as possible. Last summer, the Old Navy's first Chinese shop in Nanjing West Road, Shanghai, had been closed down. Although the Old Navy has entered the Chinese market for several years, there are not many stores in China. Take Beijing as an example, the official website of the Old Navy shows that there are only six stores in Beijing.

According to the reporter's observation, at present, the Old Navy's Tmall flagship store has only 21 products left. Consumers, Ms. Li told reporters that as early as before the Spring Festival, the Old Navy's Beijing gathering center store began to discount sales promotion, "at that time did not think so much, that is the fast fashion normal year-end discount season, many commodities are three fold up." Miss Zhang also said that the withdrawal of the Old Navy was not a surprise. "Its products are quite partial, and there is little difference between the products and the style of the cover. Unless they are discounted, they usually do not buy the brand goods at a positive price."

Insiders believe that the withdrawal of the old navy may be related to the decline in sales. It is reported that in the third quarter of last year, the results of the last quarter of the year showed that the sales volume of the Old Navy was unchanged from the same period of last year, and the sales volume of the Old Navy was $1 billion 947 million, while the same store sales fell by 4%.