Video Source: YouTube, CNBC TV
Gap Inc (NYSE: GPS) will launch a new household goods brand next month through the Walmart Inc (NYSE: WMT) website in partnership between the two retailers.
The Gap Home collection is Gap’s first entry into the household category, featuring over 400 products ranging from ornaments to bedding and bath products, and will be available for sale on June 24th. Walmart.com/ Gap Home,according to Press release Published on Thursday.
The product was developed in partnership with Gap’s licensing agency, IMG, and both retailers promote the brand together. This line will be distributed by Wal-Mart, which will launch some of the most popular products in the store later this year.
The financial terms and duration of the transaction were not disclosed, but the two companies said. CNBC The Gap Home brand is the beginning of a long-term relationship between the two.
The pandemic of the new coronavirus infection (COVID-19) has increased the demand for ornaments and furniture and the demand for retailers as people spend more time at home. Chains such as Wal-Mart, Bed Bath & Beyond, Loews, The Home Depot, etc. Expansion The category of household items accordingly.
Anthony Suhu, Executive Vice President of Wal-Mart’s Home Division, Associated Press Adding a brand like Gap can attract new customers.
Meanwhile, Gap was hit during the pandemic and was trying to find another way to grow, but is working to recover.As part of Turnaround strategy Announced last October, Gap plans to expand its high-growth Old Navy and Athleta brands and close hundreds of Gap and Banana Republic stores.
Mark Breitbard, CEO of Gap’s Global Operations, told CNBC that he is looking for new ways to leverage his brand through its licensing agency, IMG. The deal with Wal-Mart will make Gap a more predictable source of revenue and put the brand in front of new customers, he said.
“Walmart is a global leader in homespace with extensive digital reach and distribution, and this partnership enables Gap to introduce new categories in a smart and scalable way,” said Breitbard.
by CNBC, Gap and Wal-Mart began serious discussions about the brand in December.
In a statement Thursday, Suhu said: “We are excited that Gap has chosen Wal-Mart as the exclusive retailer to debut its home brand. Gap, a hallmark of American fashion, , An ideal partner to bring timeless signature styles into modern homes to help customers design and decorate beautiful living spaces. “
Source: Stock news