This message was sent to Gap Inc. employees.
Our team has spent over a decade building the Gap brand into a trusted icon in China. We are deeply committed to our customers in Greater China and know that it is a market with enormous potential for our brand.
Today, we are sharing the news that we have signed agreements to sell the Gap Greater China business to Baozun Inc., who will operate our in-market site and stores under a franchise agreement. As a leading brand e-commerce solution provider and digital commerce enabler in China and a trusted partner of ours since 2018, Baozun has supported the expansion of our Gap Greater China online business. With its local expertise and best-in-class omni-channel technology and deep expertise in data management and digital business, Baozun will enable Gap brand to better connect with Chinese consumers across all channels.
In October 2020, Gap Inc. announced the Strategic Review of its company-operated Gap businesses around the world. The news shared today is the result of the review of Gap China. This will allow Gap to serve the market through a more asset-light, cost-effective model and to benefit from the local and technology expertise of Baozun.
We expect to transition the business to Baozun in the first half of 2023, and until regulatory approvals and closing conditions are met, the Gap Greater China business will continue to operate as usual.
To the teams that support our China business, I look forward to seeing all that Baozun can unlock for GGC as they take on our stores, assets and most importantly our incredible people. I want to thank you for your support as we make this transition and express my appreciation of the China leadership team for leading the work.
President and CEO of Gap Brand