Gap Factory isn’t a separate company. It’s Gap’s own off-price channel, run by Gap Inc. alongside Gap, Old Navy and Banana Republic, and it shares Gap’s Encore rewards program. What differs is the clothing: Gap Factory mostly sells its own lower-priced lines made for its stores, not last season’s Gap stock. Expect lower prices and simpler materials. Plan to return Gap Factory purchases to a Gap Factory store or by mail, not to a regular Gap store.
An earlier version of this article called Gap and Gap Factory “two separate companies”. That was wrong, and we’ve corrected it below. We’ve also dropped the old price ranges, because we couldn’t re-check them against both stores on the same day.
Gap vs Gap Factory at a glance
| Gap | Gap Factory | |
|---|---|---|
| Owner | Gap Inc. | Gap Inc. (same company) |
| What it sells | Gap’s main collections | Mostly its own lower-priced lines, not leftover Gap stock |
| Where | Gap stores and gap.com | Gap Factory (also called Gap Outlet) stores and gapfactory.com |
| Prices | Higher list prices, frequent promotions | Lower list prices, near-constant promotions |
| Rewards | Encore | Encore (same program) |
| In-store returns | At a Gap store | At a store of the same brand; Gap Factory’s FAQ doesn’t say a Gap store will take them |
Sources: Gap Factory’s return policy FAQ, its Encore membership page and Gap Inc.’s about page, all read on October 18, 2026. Other points are explained in the sections below.
Same company, different lines
Gap Inc. was founded in 1969 by Doris and Don Fisher, and today runs Old Navy, Gap, Banana Republic and Athleta, according to its own site. Gap Factory is part of the Gap brand, not a company of its own. You can see the connection on gapfactory.com itself: it links to Gap and Banana Republic Factory as sister stores, takes the Gap Inc. credit card, and runs the same Encore program, whose points can be used “at our family of brands”.
The difference is in what hangs on the rails. A traditional outlet sells unsold stock from regular stores. Gap Factory mostly sells collections made for the factory channel. Gap Inc.’s annual report to investors describes these as collections designed for Gap Outlet and Gap Factory stores. So a Gap Factory sweater usually isn’t last year’s Gap sweater at a discount. It’s a different sweater designed to hit a lower price.
“Gap Outlet” and “Gap Factory” are two names for the same channel. Gap Inc.’s reporting still uses both names; the online store is gapfactory.com. The same model applies at Guess; see Guess vs Guess Factory.
Is Gap Factory cheaper?
Usually, but not by a fixed margin, and the list price tells you little. Both stores run promotions most of the time. On October 18, 2026, for example, gap.com listed its Modern Slim Khakis at $59.95 with 40% off at checkout. On the same day gapfactory.com ran a cardmember offer of 60% off everything. With discounts that size, the sticker price is mostly a starting point.
That’s also why we no longer print price ranges here. The ranges in older versions of this article (and on several other sites, word for word) weren’t dated, and we couldn’t collect a fair, same-day sample from both stores. Our advice: compare the checkout price of two similar items, in your size, on the same day.
Quality: what you give up
Lower prices mean simpler materials and construction, which is the point of a factory line. In practice, the differences people report are thinner fabrics, fewer premium options such as selvedge denim, and less hardware detail on jeans. We haven’t measured Gap and Gap Factory garments side by side, so treat this as a general pattern, not a test result.
What you can check yourself, before buying:
- Fabric composition on the label or product page: compare the cotton share and any elastane or polyester.
- Weight and feel: hold two similar pieces up to the light; thinner knits show it.
- Seams and buttons: look for loose threads, uneven stitching and how firmly buttons are sewn on.
- Country of origin is printed on the care label, so you can see where each item was made.
For basics you’ll replace often, such as kids’ clothes, layering tees and lounge pants, the Factory version is usually good value. For items you want to last, such as jeans, chinos and outerwear, check what the regular Gap version costs on sale first. If you’re shopping for chinos, see chinos vs pants for what to look for in the fabric.
Returns and Encore rewards
| Rule | What it says |
|---|---|
| Standard window | 30 days from delivery (online) or purchase (in store) |
| Encore Premier | Up to 45 days; after day 30 you get merchandise credit |
| All-Access cardmembers | Up to 60 days; after day 30 you get merchandise credit |
| Holiday purchases | Bought October 15 to December 24: returnable through January 15, or 30 days, whichever is later |
| By mail | Online purchases only; free for Encore members, $6 for nonmembers |
| In store | Free, at a store of the same brand as the purchase |
| Final Sale | Can’t be returned or exchanged |
The “same brand” rule is where people get caught. The FAQ’s own example is that a Gap purchase can’t be returned at an Old Navy store. It doesn’t say whether a Gap store counts as the same brand for a Gap Factory purchase. Because the stores carry different lines, assume it doesn’t: return Factory items to a Gap Factory store or by mail, and ask before you drive anywhere. Policies change, so check the current FAQ before a big return.
Encore is one free program for Gap Inc.’s brands, with three levels on the membership page. Core is open to all and earns 5 points per $1. Premier applies once you spend $350 or more a year and adds the longer return window. All-Access is for cardmembers and earns more points. Free membership already removes the $6 mail-return fee, so it’s worth joining before your first online order from either store.
How to tell them apart second-hand
When thrifting, the label is the giveaway. A fan blog post from around 2020 describes Gap Factory jeans as having a horizontal “Gap Denim” or “Gap Factory” label inside and usually no leather patch on the back, while mainline Gap jeans had a square Gap logo label. Labels change over the years, so treat this as a hint, not proof. If the inside label or tag says “Factory”, it’s from the factory line.
Which one should you shop?
| If you want… | Shop | Why |
|---|---|---|
| The lowest price on basics | Gap Factory | Lower list prices plus constant promotions |
| Items to wear for years | Gap, on sale | Better materials; promotions often close the price gap |
| A specific product you saw on gap.com | Gap | Factory sells different lines, so it may not exist there |
| Easy returns at the mall | Wherever you’ll return it | In-store returns go to a store of the same brand |
FAQ
Is Gap Factory legit?
Yes. Gap Factory is run by Gap Inc., the company behind Gap. The official online store is gapfactory.com. If a site offers “Gap Factory” deals under another domain, treat it with caution.
Is Gap Factory the same as Gap?
Same company and same rewards program, but mostly different clothes. See same company, different lines.
Gap Factory vs Gap Outlet: what’s the difference?
None in practice. They’re two names for the same off-price channel, and both names are still in use.
Can I return Gap Factory items to a Gap store?
Don’t count on it. The FAQ requires in-store returns at a store of the same brand. Use a Gap Factory store or return online purchases by mail. See the returns table.
Bottom line
Gap Factory is Gap’s budget line, not a different company and not a clearance rack. Use it for basics where price matters more than lifespan. For pieces you want to keep, compare against Gap’s sale price on the same day. Join Encore before your first order, and return Factory purchases to Factory.
Axel Lander is the founder and editor of ReadySleek. He publishes practical guides on men’s style, grooming, and fragrance, with a focus on clear comparisons, value, and the trade-offs readers should know before deciding.
