Categories
Gap To Launch Home Goods Brand Online In-Store To Follow Walmart

Walmart, Gap To Launch Home Goods Brand Online, In-Store To Follow

May 27, 2021 at 03:53AM
by PYMNTS

Walmart and Gap have signed a multiyear deal that will create a new home decor brand, CNBC reported.

Walmart is currently looking at driving more online sales, while Gap is looking to garner more shoppers, according to CNBC. Gap Home is the name of the new brand, and it will launch June 24 on the Walmart website.

There will be about 400 items, including bedding, bath items and decorative accessories, CNBC reported. They will range in price from $15.88 to $64.98. Some of the most popular items will then appear in some Walmart stores.

Both companies have said this will be the beginning of a new long-term partnership, and Walmart Executive Vice President for Home Anthony Soohoo told CNBC customers would likely see much more denim and chambray-inspired collections in the years to come. The tie-up will see Walmart expanding further into home and fashion, and the company has already added more merchandise, including more furniture and apparel.

Walmart saw eCommerce sales grow by 79 percent in the last fiscal year amid the pandemic, CNBC reported.

Meanwhile, Gap is working to win back more shoppers, having taken a hit during the pandemic and seen hard times even before that, with its brands like Banana Republic and its namesake Gap label being weak spots, according to CNBC. The company’s bargain-friendly Old Navy saw growth, though.

The company is currently considering ways to drive sales, and for fiscal 2021, it will be looking at forecast sales to be above 2020 levels. The deal with Walmart will give Gap a more predictable revenue stream.

A March PYMNTS report noted that Gap did see increased online sales, as many companies did while the pandemic made it extremely risky to shop in person. The company had a 49 percent boost in online sales compared to 2019. Online comprised 46 percent of net sales in the fourth quarter.