Old Navy to withdraw from Japanese Market
U.S clothing retailer Gap, Inc., announced May 19th that it has decided to withdraw its Old Navy label from Japan and close all of its 53 Old Navy stores in the country by the end of January 2017.
Old Navy opened its first shop in Japan in 2012, and since then, has expanded its business of providing casual clothing and accessories for a variety of age groups in competition with low-priced local retailers like the Uniqlo stores of Fast Retailing Co., Ltd. The first . Old Navy shop on Okinawa opened in spring 2015 at Aeon Mall Okinawa Rycom in Kitanakagusuku.
However, the fast-moving fashion market has been facing a turning point with the advent of global online markets, and increasing competition from international retailers like ZARA and H&M. The profits at Old Navy stores have been falling leading the outlets to struggle to stay afloat, which ultimately led the company to decide to withdraw from the Japanese market.