Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Next to run Gap brand in Britain's retail shake-up

Published 17/09/2021, 09:19
Updated 17/09/2021, 10:50
© Reuters. Shoppers walk past a former branch of the British clothing retailer Next, now converted into an independent gift shop on Oxford Street in London, Britain, January 3, 2019. REUTERS/Toby Melville

© Reuters. Shoppers walk past a former branch of the British clothing retailer Next, now converted into an independent gift shop on Oxford Street in London, Britain, January 3, 2019. REUTERS/Toby Melville

By James Davey

LONDON (Reuters) - British clothing retailer Next has struck a deal with Gap, to run the U.S. brand's business in the UK and Ireland, bolstering its market reach after showing its resilience during the COVID-19 pandemic.

The deal gives Gap the opportunity to retain a significant presence in Britain and Ireland, having closed its shops in those markets earlier this year.

The two groups will form a joint venture to operate Gap's e-commerce business across the NEXT Total Platform, set-up Gap-branded Shop-in-Shops and offer click-and-collect options for online customers beginning in 2022.

Shares in Next were up 1.6% at 0842 GMT, extending their 2021 gains to 16.3%.

The partnership echoes moves by online retailers ASOS (LON:ASOS) and Boohoo to snap up fashion brands that have gone out of business in the UK and are no longer available on the high street.

ASOS bought the Topshop, Topman, Miss Selfridge and HIIT brands in February from the administrators of Philip Green's collapsed Arcadia group for 265 million pounds.

In January, Boohoo purchased the Debenhams brand out of administration for 55 million pounds and in February bought the Dorothy Perkins, Wallis and Burton brands from the Arcadia administrators for 25.2 million pounds.

Next will own 51% of the JV, while Gap will own 49%.

Gap will be able to utilise Next's UK and Ireland store network of around 500 stores.

Next also has an online presence in over 70 countries selling its own brand and over 700 other fashion, home and beauty brands.

© Reuters. Shoppers walk past a former branch of the British clothing retailer Next, now converted into an independent gift shop on Oxford Street in London, Britain, January 3, 2019. REUTERS/Toby Melville

“Gap is partnering with Next ... to amplify our omnichannel business and meet our customers in (the) UK & Ireland where they are shopping now," said Mark Breitbard, CEO and President of Gap Global.

In July, Next lifted its profit forecast after pent-up demand for adult clothes and warm weather helped it smash sales forecasts.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.