Gap (NYSE:GPS) announced a deal with Europe's largest online fashion retailer, Zalando, to sell its brand. Starting next May, Gap is hoping to reach more consumers, especially in markets with no physical stores.
Though available for delivery in 24 European countries, and for in-store purchases at 200 stores, Gap still has no presence in several key markets including Germany, reported Reuters. Zalando is based in Berlin and ships to 15 European countries, which would provide a much needed foothold.
"Many customers in Europe still don't have access to the Gap brand," Zalando co-founder David Schneider told Reuters. "We offer a platform to enter 15 markets in local languages, in local currency, with free shipments, returns and so on."
The company is looking to expand abroad and strengthen its e-commerce presence. Gap recently announced it would be working with franchise partner Arvind Lifestyle Brand to open 40 new Gap stores in India next year, starting with locations in Mumbai and New Delhi. And on the digital front, the retailer recently announced the roll out of an online wish list for shoppers to curate their most-wanted items from across all five of the company's brands.
The Zalando deal is focused on the Gap brand, but the company may later expand the deal to include other brands in its portfolio, such as Old Navy.
-See this Reuters article
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