Gap and Walmart have entered into a multiyear deal to create a home goods brand called Gap Home, which will launch on Walmart’s website on June 24, 2021, and eventually into the big-box retailer’s physical stores.
Gap Home will make its debut with nearly 400 pieces ranging from bath, bedding to decorative accessories, with items priced between $15.88 for denim-styled pillows to $64.98 for a king comforter set.
“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,” said Anthony Soohoo, executive vice president, Home, Walmart in a statement.
“Over the past few years, we’ve focused on expanding our home assortment to bring high-quality, stylish home goods and decor to our customers at an unbelievable value. Gap Home is the latest example of how we’ll deliver on that mission.”
While the two companies did not disclose the deal’s financial terms, they expect the deal to become a long-term partnership.
“It’s not a capsule collection,” said Soohoo in an interview with CNBC.
“It is a relationship that we believe we want to build, that is enduring for us.”
The deal is likely to help Walmart improve on its online sales, while it is will help Gap grow its brand presence and reach new shoppers.
“Gap Home at Walmart opens a new door for Gap as a lifestyle brand delivering timeless American style in all new ways. We are excited for this growth opportunity, enabling even more customers to fall in love with Gap,” said Mark Breitbard, president and CEO of Gap brand.
In recent years, Walmart has looked to expand into new verticals such as home and apparel, forming exclusive partnerships with several private labels, ranging from Drew Barrymore to Food Network host Ree Drummond. The efforts have been crucial for Walmart in not only competing with other players such as Target but also in improving on its eCommerce business.
The partnership with Walmart is likely to bring much-needed relief to Gap, meanwhile. The company has struggled to sustain sales of its namesake Gap label and Banana Republic over the course of the past year.
“It felt like it could be a super interesting partnership for us, and that’s how the conversations began,” said Breitbard. “And they just gained steam, and now we have two strong American brands kind of working together.”
The deal will help Gap gain visibility among a new set of shoppers and have a more predictable revenue stream.
“What we are transitioning from is being a strictly vertical retailer selling apparel,” said Breitbard.
Both of the companies reportedly plan to promote the brand together through their websites and through email marketing. Breitbard noted that Gap may stock Gap Home merchandise in the company’s select stores as well.