Gap Announces New Plan to Sell Home Furnishings at Walmart
(Bloomberg) -- Gap Inc. is teaming up with Walmart Inc. to sell the clothing label’s first-ever collection of home goods.
The merchandise will range in price from $15 pillows to $65 comforters and will hit Walmart’s online shop exclusively on June 24. They will be available in stores later.
“We’re committed to building this business and we’re aiming high for it,” said Mark Breitbard, chief executive officer of the Gap brand, in an interview. He said the company is focused on “quality deals” instead of simply expanding to more categories.
Gap declined to share additional details about the terms or revenue targets for the business.
The multiyear deal will bring the home decor products, which range from tabletop items to bedding, to the website and aisles of the world’s largest retailer. The apparel chain is expanding into more categories, like sunglasses and baby gear.
In June, Gap signed a 10-year pact with designer and rapper Kanye West to sell a fashion line. In April, it signed an eyewear licensing deal with Italian manufacturer De Rigo. This month, Gap agreed to sell its Intermix boutiques to private equity firm Altamont Capital Partners.
Home goods have performed well during the Covid-19 crisis, with lockdowns and business restrictions keeping consumers cooped up for more than a year. Spending on home products such as housewares, and appliances in the U.S. spiked more than 25% in 2020, according to data from research firm NPD Group. Cookware saw the biggest jump.
Gap, which also owns the Old Navy and Banana Republic brands, could use a boost after it reported fourth-quarter sales that fell short of Wall Street’s expectations in March. Shares have fared better, up 68% year-to-date through Wednesday’s close.
Walmart declined to share sales figures for its home division, but said it hopes momentum will linger even after social lives resume. Anthony Soohoo, executive vice president of Walmart’s home goods business, said new hybrid workplaces and consumers’ newfound obsession over their living space will support spending going forward.
“The role of the home is more important to consumers, even as we get out,” said Soohoo.
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