(Image Source: CNBC)
Walmart and Gap have just signed a deal to co-create a home decor brand in hopes of strengthening their brands.
The brand is named Gap Home, and will be featured on Walmart’s website from June 24. Special items will also be shown in Walmart stores. For their first collection, the brands designed around 400 items including bedding, bath and decorative accessories. The price ranged from $15.88 to $64.98.
Benefiting from the growth of online shoppers during the pandemic, Walmart’s e-commerce sales increased by 79% last year. Meanwhile, Gap was struggling to stay relevant with its old customers even before the pandemic. The deals will guarantee Gap a more predictable revenue stream and new customers.
Gap and Walmart have been in discussion on the home brand since December last year:
“It felt like it could be a super interesting partnership for us, and that’s how the conversations began. And they just gained steam, and now we have two strong American brands kind of working together,” said Mark Breitbard, CEO of Gap Global.
Details about the deal were not disclosed but will consist of a long-term partnership between 2 retailers. With the new brand, Walmart will go further into the home and fashion sector, generate more income and acquire new shoppers.
Both of them will promote the brand with Walmart being the main distribution channel, though some items will be placed in selected Gap stores as well.