Amazon is partnering with Gap and will now feature a range of Gap-branded products such as jeans, socks, sweatshirts, sleepwear, and baby products.
Amazon and Gap have entered into a partnership that will see the popular clothing brand launch its store on the e-commerce site. Starting this week, items available for purchase in the United States and Canada include basics like hoodies, t-shirts, denim, socks, and underwear. Sleepwear for adults, kids, and infants can also be found on the platform.
Although Amazon shoppers were able to buy Gap merchandise from the digital retailer previously, it was always through third-party sellers. The new partnership with Amazon Fashion marks the first time the popular clothing brand is selling its products on the online marketplace directly. The store will also include Baby Gap-branded items like nursery furniture, strollers, bassinets, and cribs.
However, none of the products are exclusive to Amazon and is available in Gap stores. But items purchased from the digital retailer will be included for Prime delivery. Speaking about the partnership via CNN Business, CEO of Global Gap Brand Mark Breitbard said, “Collaborating with Amazon Fashion provides us a new channel to deliver Gap’s modern American essentials to even more customers.”
Teaming up with Amazon could also help Gap expand its market reach in the United States and Canada. The move also comes at a pivotal moment for the company which has recently suffered several setbacks as it struggles to boost sales. In October, the retailer also pulled all Yeezy merchandise from its stores and shut down the accompanying online store.
Additionally, the retail giant had a change in leadership when CEO Sonia Syngal abruptly left the company in July. Syngal, who took up the position in early 2020, tried to turn the company around through a “Power Plan 2023” strategy. But despite her best efforts, the retailer continued to post disappointing sales and profitability. Amid the Amazon deal, Bob L. Martin is serving as interim CEO and executive chairman of the board.
The popular retail brand has also suffered from inventory and merchandising problems at its better-performing Old Navy division. “Gap is facing slowing footfall at its own stores and has struggled to grow sales for years,” Analyst and Managing Director of Globaldata Retail, Neil Saunders said, referencing the Amazon partnership.
He added that Gap hopes that, by making some of its range available on Amazon, the retailer will increase exposure and boost sales – especially in the family demographic. “This is a win for Amazon as it brings a big brand name onto its site and helps boost its credentials in fashion and apparel.” He added vain CNN Business.
But there are risks for Gap, as the new partnership with Amazon could reduce the chain’s direct sales and make it overly reliant on an outside distributor. But the potential impact is yet to be seen, with the retailer’s stock surging 8.6% in trading following the collaboration announcement.
Meanwhile, as part of its streamlining efforts away from Amazon, the clothing giant also announced the sale of its Greater China business to Baozun Inc. for $40 million. The transaction is expected to be completed in 2023, TipRanks reports.