et Gap Inc.
plans to partner with a line of Gap-branded home products that will be sold at Walmart, a sign of how each retailer is expanding into new territory to stay competitive.
Gap Home, which will include items such as bedding and pillows, goes on sale June 24, the companies said. For starters, the collection will launch online, but Walmart aims to bring popular items to stores in the future, a spokesperson said. It could happen later this year, according to someone familiar with the situation.
Gap Home items will only be sold at Walmart.
Gap, which is working to revive its eponymous brand, does not currently sell household items and has never sold its branded items at Walmart.
Gap signed an agreement last year with licensing company IMG that will allow it to expand into interior design, furniture, textiles and other categories. The deal also includes Gap’s Banana Republic brand. Gap Home will be developed in partnership with IMG, the companies said on Wednesday.
Gap had reported a series of weak sales in recent years and struggled throughout the pandemic as spending moved away from clothing. But he made improvements under the leadership of new Managing Director Sonia Syngal and saw positive same-store sales in North America in the fourth quarter for the Gap brand. The company released quarterly results on Thursday.
In the past, Walmart has struggled to create premium clothing brands, returning to a focus on basics like socks and sweatshirts. Walmart clothing merchants have used a pyramid model to guide their work, with basic clothing forming the base of the pyramid, most of what they aim to sell. But as digital sales become a higher priority at the retailer, executives are experimenting with new models, such as selling premium brands only online.
Specialty retailers like Gap once avoided selling their products anywhere other than their own stores or websites. But as competition intensifies, many brands are increasingly expanding their distribution, sometimes even selling through competitors like Amazon.com. Inc.
Write to Sarah Nassauer at [email protected] and Suzanne Kapner at [email protected]
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