Gap, Banana Republic and Athleta will launch online in key Gulf markets during 2026 before moving into physical stores, giving Gap Inc. a locally managed route to one of fashion retail’s faster-growing regions.
Gap Inc. has partnered with Dubai-based Chalhoub Group to expand Gap, Banana Republic and Athleta across the Gulf Cooperation Council, combining the US apparel group’s brand portfolio with Chalhoub’s regional retail, digital and omnichannel capabilities. The partnership was announced on August 4, 2026.
Digital comes before stores
The rollout will begin online across the UAE, Saudi Arabia and Kuwait during the remainder of 2026, followed by physical stores across the wider GCC in 2027. Neither company has disclosed planned store numbers, investment values or detailed locations.
Chalhoub provides substantial regional infrastructure. The group works with more than 400 international brands, operates across over 950 stores and digital platforms, and employs more than 16,000 people in eight Middle Eastern countries.
The digitally led launch should allow the partners to test demand, product mix and customer acquisition before committing heavily to physical retail.
Three brands arrive with different momentum
The expansion comes as Gap itself is recovering strongly. First-quarter fiscal 2026 Gap-brand sales rose 10% to $796 million, with comparable sales also up 10%. Banana Republic revenue increased 1% to $431 million, while Athleta remained under pressure, falling 12% to $270 million.
This makes the GCC particularly important for Athleta, where growing participation in fitness, wellness and active lifestyles could offer an additional market for the brand while its US business is being rebuilt.
Localisation becomes the sourcing test
The partnership fits Gap Inc.’s broader strategy of expanding its brands internationally without relying solely on company-operated stores. Chalhoub’s regional knowledge should help adapt assortment, sizing, merchandising, marketing and fulfilment to Gulf consumers.
For apparel suppliers, international expansion can create incremental demand, but GCC growth may require more climate-appropriate fabrics, modest-fashion options, lightweight layering, activewear and market-specific colour and sizing strategies.
The key signal will be the pace of the 2027 store rollout. Strong digital sell-through in Saudi Arabia, the UAE and Kuwait could turn the partnership from a market-entry exercise into a meaningful new growth channel for Gap Inc.’s three brands.
