Reliance Retail has signed a franchise agreement with Gap Inc to bring the American fashion brand to India. Gap will return to India for the second time after parting ways with Arvind Fashions in 2020.
Reliance Retail will be the official retailer of the fashion house in India, blending exclusive stores and digital commerce platforms. “The partnership is intended to leverage Gap’s position as a leading casual lifestyle brand and Reliance Retail’s established competencies in operating strong omnichannel retail networks and scaling local manufacturing and driving sourcing efficiency,” Reliance said. Retail in a press release about the long-term deal. .
“At Reliance Retail, we pride ourselves on bringing the latest and greatest to our customers and are pleased to announce the addition of iconic American brand Gap to our fashion and lifestyle portfolio. We believe that Reliance and Gap complement each other in their vision of bringing industry-leading fashion products and retail experiences to their consumers,” Akhilesh Prasad, executive director of fashion and lifestyle at Reliance Retail, said in the statement.
Adrienne Gernand, general manager of international and global licensing and wholesale for Gap Inc, said the company hopes to grow Gap’s business in key international markets.
“Partnering with regional experts, such as Reliance Retail in India, allows us to offer our relevant, purpose-driven brand to customers around the world while continuing to diversify our business portfolio through our partner-based model,” said Gernand.
Reliance Retail is a subsidiary of Reliance Retail Ventures (RRVL), which is the holding company for all the retail companies in the Reliance group. RRVL reported consolidated turnover of Rs 199,704 crore and net profit of Rs 7,055 crore for FY22.
Gap first came to India in 2014 through a franchise deal with Arvind Fashions and exited six years later.
Second Advent
•Founded in San Francisco in 1969, Gap is considered an authority on modern American style
• Gap’s previous attempt to woo Indian customers failed after it terminated a deal with a unit of Arvind Fashions in 2020
•For Gap, whose brands include Old Navy and Banana Republic, the partnership with Reliance comes as apparel retailers struggle with weak demand in the face of rising inflation.
•For Reliance, the deal comes days after announcing a plan to open outlets for popular British sandwich and coffee chain Pret A Manger in India.
•Reliance has hundreds of retail stores spanning electronics, groceries and fashion in India, and is also expanding into e-commerce
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