As part of its efforts to build the business and improve its profitability, Gap has announced an alliance with Amazon to distribute their collections through Amazon Fashion in the United States and Canada with the aim of increasing its reach and speed of delivery.
The deal, the first between both companies, includes the sale of basic products, t-shirts, pants and pajamas, both for adults and children. The launch will also include the distribution of the Gap baby lineof fashion and childcare products, for which it has partnered with the manufacturer Delta Children, and will also be available in ecommerce and Gap stores.
“The collaboration with Amazon Fashion gives us a new channel to offer the essentials to customers in the United States and Canada. We are excited to take this step to expand our product offering.”has declared Mark Breitbard, Gap Brand Director.
“At Amazon Fashion, we continuously expand our product offering for our customers”has added for his part Muge Erdirik Dogan, President of Amazon Fashionwho has underlined that “We are excited to make shopping for Gap products even easier for customers with fast, free delivery through Prime service”.
The President of Amazon Fashion He has also highlighted that among the main benefits that this association between Gap and the marketplace will have for consumers, he highlights the advantage in terms of delivery services that from this moment they will be able to enjoy the purchases they make through the marketplace of products signed by the North American brand. In addition, in terms of product, it has highlighted the offer that the brand’s consumers can already access from the new Gap online store at Amazon Fashion.
This alliance is one more step in the Gap’s new distribution strategywhich is currently immersed in the strategy ‘Power Plan 2023’ and that includes the outsourcing of costs, including the transfer to third parties of its network of stores in various markets.
At the end of June 2020, also in an attempt to improve its financial results, Gap teams up with rapper and designer Ye, formerly known as Kanye West, to create the Yeezy Gap. More than a collaboration, they signed a decade-long contract, which, due to Ye’s controversial statements, ended eight years ahead of schedule. Just two years later, Ye alleged an alleged breach of contract. Last September, Gap he took advantage of this to end the alliance that was expected to generate $1 billion in annual sales.
Gap is experiencing a very difficult year with losses and a sharp drop in sales. After a first quarter in the red, the company ended the second quarter with a drop in sales of 8%up to 3,857 million dollars and a gross margin that fell even more, 27%, to 1,330 million dollars.