Gap and Macy’s Collaborate to Counter Competition
Gap and Macy’s, two major retailers, are joining forces for the first time to combat the intense competition in the apparel industry. Starting from Tuesday, Macy’s customers will have the opportunity to purchase a new line of Gap pajamas, loungewear, and underwear through Macy’s online platforms and select stores nationwide. The collection is reasonably priced, ranging from $12.50 to $79.95.
This collaboration aims to benefit both companies by expanding Macy’s product assortment and increasing Gap’s customer reach. The Gap line sold at Macy’s will be designed, produced, and distributed by Centric Brands through a licensing agreement with Gap.
Both Macy’s and Gap are actively working to revive their businesses as they face the challenges of stiff competition. Their revenue has declined by 8% in their latest quarters compared to the previous year.
In addition to the partnership with Gap, Macy’s is also updating its private labels to better align with evolving consumer preferences. On the other hand, Gap has been making changes at the executive level and has recently appointed Richard Dickson, former Chief Operating Officer and President of Mattel, as their CEO.
These efforts come at a time when new players like e-commerce company Shein are gaining market share in the apparel industry. Just last week, Shein and fast-fashion company Forever 21 announced a collaboration that will allow Forever 21 to distribute its products through Shein’s online platform.
Furthermore, this partnership could potentially open up opportunities for Shein to sell merchandise from other brands owned by Sparc Group, Forever 21's parent company. These brands include Reebok, Brooks Brothers, Aéropostale, Eddie Bauer, Lucky Brand, and Nautica.
In response to this news, shares of Gap rose by 4.1% in early trading, while Macy’s stock experienced a 1% increase.
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