Investors include H&M Co:Lab, the venture capital arm of the H&M Group.
The group plans to focus on organic growth and is doubling marketing investments next year.
The plan includes closing Gap and Banana Republic stores, doubling the Athleta business and growing Old Navy from a $8 billion to $10 billion brand.
The fashion company is seeing improvements in the third quarter, after a 23 percent drop in sales in the nine months.
The store will be in Guiyang’s D. Place shopping mall, owned by HLC Commercial Real Estates Group.
Underlying growth was fueled by new shopping habits brought on by COVID-19.
The group is reviewing the warehouse and distribution model, and Gap and Banana Republic e-commerce operations in Europe.