Gap is closing all 53 of its Old Navy shops in Japan by the end of January next year. Just four years after entering the country, the chain has found itself in trouble, unable to attract shoppers with its low-end offerings. The blame goes to Gap, whose sole strategy for the chain seemed to hinge on low prices.
In a country where more than a decade of deflation has made many people take low prices for granted, Gap and other apparel companies need to come up with fresh ways to get shoppers to open their wallets.
Gap is the world’s third-largest apparel company. It had been expanding in Japan until recently. Its namesake brand hit the market in 1995, followed by its high-end Banana Republic label in 2005. Old Navy came in 2012, with Gap betting that the Japanese demand for low-price clothing would increase.
At first, customers responded well to Old Navy’s combination of the American casual aesthetic and attractive prices. But people gradually grew bored with the brand’s offerings. Despite that, Gap did not reassess its approach, and continued to simply import the same clothes that it sold in the US.
One problem is that Old Navy sizing is tailored to foreigners, and clothes from local brands fit Japanese people better.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Turning the supply chain upside down, on-demand production reshapes apparel
The global fashion industry, long celebrated for its creativity and scale, is facing a structural reckoning. For decades, retailers and... Read more
Intertex Milano 2026 - A global nexus for textile innovation
Intertex Milano is set to return this summer, confirming its status as a premier international destination for the textile and... Read more
Primark at crossroads as AB Foods weighs spin-off amid digital and Lefties press…
The long-standing supremacy of Europe’s budget fashion champion, Primark, is facing a test. As of February 2026, Associated British Foods... Read more
Vietnam, Bangladesh, Cambodia drive US apparel imports in 2025
The 2025 year-end data for the US apparel sector reveals an industry in structural flux. Despite aggressive tariff measures and... Read more
The New Dress Code: Sportswear’s takeover of modern wardrobes
For much of the last decade, fashion retail has been defined by volatility. Trends have shortened, discount cycles have intensified... Read more
Hemp finds its moment in India’s $500 billion American trade calculus
In the grand arithmetic of India’s expanding trade engagement with the US, the headlines usually gravitate toward oil cargoes, aircraft... Read more
EU PET spunbond imports under scrutiny, misclassification sparks regulatory and …
The European nonwovens and technical textiles sector is facing an unprecedented compliance crisis as a rise of customs misclassification threatens... Read more
From atelier to algorithm, Gucci is redefining premium marketing
As Milan welcomes the Primavera 2026 fashion calendar, the spotlight is fixed not just on the runway but on Gucci,... Read more
America’s Store Split: Why discount retailers are winning as department stores s…
By early 2026, the American retail industry no longer resembles a single marketplace moving in one direction. It feels more... Read more
Europe’s Textile Crisis: The sovereign fibre trap and the race against China
By early 2026, the European textile and apparel sector finds itself at a crossroads that challenges traditional market logic. Unlike... Read more












