Gap and Walmart Team Up to Launch New Home Goods Brand
Source:USA Today
From:Taiwan Trade Center, Chicago
Update Time:2021/07/23
Gap is teaming up with Walmart on a home brand and the effort signifies a "new chapter" for the apparel retailer, according to Gap CEO Sonia Syngal. The partnership will benefit from the "scale" of Walmart with the "cool" of Gap. The brand will be called Gap Home and launch with 400 products on Walmart's online site as well as its brick-and-mortar locations. The move reflects a "restructuring" of Gap's business model and monetizing the brand. It is the first time Gap is moving out of the apparel category, according to the report.
Gap's entry into the home space isn't a surprise. The home category has been expanding in recent months with competitors including Bed Bath & Beyond and J.C. Penney adding new store brands. Lowe's and Home Depot have also expanded to sell more decor as consumers spend more money on their homes as they have spent more time there during the pandemic.
Gap announced last May that it hired global licensing leader IMG to explore expanding into categories including home, baby equipment and furniture. Gap and Walmart started talking about partnering in December, said Mark Breitbard, president of Gap brand. "We're focused on building the business through Walmart, as opposed to building it just through our site, because we believe that that's how it can scale as we expand the reach," Breitbard said in an interview with USA TODAY, adding Walmart has "unparalleled scale and incredible reach." Breitbard said the plan is to add more categories to the Gap Home brand over time. "We believe that almost every category in the home space is ripe for a fresh take on using this youthful, modern American casual easy filters that we use for Gap," he said. "I think the timing is great for it."
Source: https://www.usatoday.com/story/money/shopping/2021/05/26/walmart-gap-home-brand-partnership/7428384002/