American retailer Gap partners with Next Plc for UK & Ireland business

Beginning in 2022, the companies are entering a joint venture wherein Next will have a 51 per cent stake, while Gap will own 49 per cent.

The franchise partnership will entail managing Gap’s growing e-commerce business, including Gap.co.uk and Gap product on the Next website, as well as Gap-branded Shop-in-Shops at flagship Next locations and extensive click-and-collect options for online customers.

Gap is also looking to partner with Hermione People and Brands in France, who would own and operate the Gap stores in the market and build its franchise operations there. Pending regulatory approval, it plans to transfer 21 French stores and the majority of Gap France employees to Hermione People and Brands in October 2021. In Italy, the company?is in exclusive negotiations with a partner to take over company-operated Gap stores there.

“As part of?our?Power Plan 2023, we began a strategic review of company-operated Gap businesses in Europe to maximise the opportunities for our brand in these key international markets. Through this process, we determined that the most effective way to grow our business in Europe would be through strong local franchise partners capable of engaging consumers with excellent customer experiences across powerful omni platforms that can extend Gap’s reach in each market,” the company said in a statement.

Fibre2Fashion News Desk (KD)