Old Navy, the retail brand owned by Gap, has recently revealed its plans to withdraw from the Chinese market by March 1, 2020. This move comes just a month after the company decided against spinning off Old Navy from Gap and instead refocusing on its operations in North America.

The process of closing Old Navy stores in China has already begun, with the brand’s products no longer available on Chinese e-commerce platform Tmall. Old Navy’s official Chinese website has also confirmed that all stores in the country will be closed by the beginning of March.

Old Navy entered the Chinese market in 2014 and currently operates 10 stores in the country, with six located in Beijing. The decision to withdraw from the Chinese market was first announced in November of last year.

This decision places Old Navy amongst a growing list of international brands that have exited the Chinese market in recent years, including Forever 21, Asos, and New Look. Gap initially announced in February 2019 its intention to spin off Old Navy as a separate company, in order to focus on growth strategies and expansion. However, due to Old Navy’s slowing performance, Gap reconsidered the spin-off and ultimately decided against it in January 2020. The company cited the cost and complexity of the operation as factors that raised doubts about its ability to create value from the split.

Gap is scheduled to announce its financial results for the fourth quarter and full-year fiscal 2019 on February 27, 2020. It remains uncertain how the exit from China will impact the overall performance and future strategy of the company.

For more information about the closure of Old Navy stores in China, click here.

To learn about the impact of international brands exiting the Chinese market, click here.