Gap is reassessing its international businesses. In 2010, Gap entered China. Ten years later, the retailer pulled its Old Navy brand from the country. Now, rumors are circulating that Gap is looking to sell its entire business in China as revenue derived from operations there continues to shrink.
The retailer is also initiating a strategic review related to its European business, with one possible result being the closure of stores in the United Kingdom, France, Ireland, and Italy some time in the second quarter.
The U.S. is Gap's biggest market; revenue from operations in China makes up only about 5% of the total. It might make sense for the retailer to cut its losses in China and focus on the larger market.
Deliberations are at an early stage and the company could decide to keep the operation, the people said. A representative for Gap declined to comment.