Gap, one of the world’s largest fashion chains, is to start selling its casual clothing online in the UK, as part of a push for international expansion that will also see it open its first store in China.

The company, which owns Gap, Old Navy and Banana Republic chains, is seeking to counteract a protracted domestic sales slump in its main brand.

The Gap brand will also begin television advertising in the US next month after an absence of two years.

Gap built its brand on one of the fundamental tenets of 1990s retailing — globalisation. From New York to Newcastle, stores are stacked high with piles of identical jumpers and jeans.

Gap first arrived in the UK in the late 1980s, but its overseas sales began falling and the company has had to retrench, as consumers sought local diversity in a mini-backlash against uniformity and globalism.

In the US, even before the recession, sales were declining, initially at Old Navy and Gap, and then at the more upscale Banana Republic.

In response, the company has been cutting costs and streamlining stores over the past two years.

A recent high profile campaign at Gap, which was focused around the launch of a premium jeans line, fell flat. But Old Navy has done better, showing signs of a recent turnaround. In September, same-store sales rose 13 per cent compared with a 24 per cent decline a year earlier.

Glenn Murphy, the chief executive of Gap, said that Old Navy’s performance this year had shown what the company could achieve through “re-invigorated marketing”.

“With our improved economic model, we’re ready to step up our investments and strategies to regain market share and expand our international platform.”

Sabrina Simmons, chief financial officer of Gap, said that the company was well positioned due to its focus over the past two years on margins, maintaining costs, generating strong free cash flow and improving its return on invested capital.

The company will launch online businesses in Canada and the UK in 2010, while expanding its outlet stores abroad.

At the Old Navy chain, a new smaller store format will be in 50 different shops by year’s end, the company said. Banana Republic, which executives said had become too work-focused, will provide more variety for leisure as well as career. At Gap, the company will concentrate on khakis and trousers in 2010.

Remodelling of stores at the chain would continue, the company said, and television advertising will restart in November.

Gap operates more than 3,100 stores in the US, the UK, Ireland, Canada, Japan and France and has recently signed franchise agreements in international markets such as Asia, the Middle East and Latin America. It also owns the Piperlime and Athleta online businesses.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive