Video source: YouTube, CNBC Television
Gap Inc (NYSE: GPS) will begin selling a new home goods brand exclusively through Walmart Inc’s (NYSE: WMT) website next month under a partnership between the two retailers.
The Gap Home collection — Gap’s first venture into the home category — features more than 400 products, ranging from décor to bedding to bath goods and will go on sale June 24 at Walmart.com/GapHome, according to a press release issued Thursday.
The products will be developed in partnership with Gap’s licensing agency, IMG, and both retailers will promote the brand together. The line will be distributed by Walmart, which will begin selling some of the most popular products in its stores later this year.
Financial terms and the duration of the deal were not disclosed but the companies told CNBC the Gap Home brand is the start of a long-term relationship between the two.
With people spending more time at home due to the COVID-19 pandemic, demand for décor and furnishings has been on the rise and given a boost to retailers. Chains such as Walmart, Bed Bath & Beyond, Lowe’s and Home Depot have expanded their home goods categories accordingly.
Anthony Soohoo, executive vice president of Walmart's home division, told The Associated Press that adding a brand like Gap will help attract new customers.
Gap, meanwhile, is working to recover after taking a hit during the pandemic and trying to find other avenues for growth. As part of a turnaround strategy unveiled last October, Gap plans to expand its higher-growth Old Navy and Athleta brands while closing hundreds of Gap and Banana Republic stores.
Mark Breitbard, chief executive officer of Gap’s global operations, told CNBC it has been looking for new ways to capitalize on its brand through its licensing agency, IMG. The deal with Walmart, he said, gives Gap a more predictable revenue stream and puts the brand in front of new customers.
Breitbard said, “Walmart is a global leader in the home space with extensive digital reach and distribution and this partnership enables Gap to introduce a new category in a smart, scalable way.”
According to CNBC, Gap and Walmart began serious talks about the brand in December.
In a statement Thursday, Soohoo said, “We’re thrilled that Gap selected Walmart as the exclusive retailer to debut its home brand. A hallmark of American fashion, Gap is the ideal partner to bring its timeless, signature style into the modern home to help customers design and decorate beautiful living spaces.”
Source: Equities News