Gap launches its store on Amazon

By Parija Kavilanz, CNN Business

Gap announced Thursday that it has officially launched its store on Amazon.

While shoppers were able to buy Gap merchandise on Amazon previously through third-party sellers, the new partnership with Amazon Fashion marks the first time that Gap itself is selling its products on the online marketplace.

The items, available for purchase beginning today on Amazon US and Amazon Canada, include the basics that Gap is known for — hoodies, T-shirts, denim, socks, underwear and sleepwear for adults, kids and infants.

Gap Inc. said its Amazon store will also include Baby Gap-branded items such as nursery furniture, strollers, bassinets and cribs.

None of the Gap items are exclusive to Amazon, however, and will also be available for purchase in Gap stores and on Gap.com. Amazon said items from Gap’s store will be included for Prime delivery.

Gap shares were up over 7% in late afternoon trading Thursday.

“Collaborating with Amazon Fashion provides us a new channel to deliver Gap’s modern American essentials to even more customers in the US and Canada,” Mark Breitbard, CEO of Global Gap Brand, said in a statement.

Teaming up with Amazon could help Gap expand its market reach in the US and Canada, and comes at a pivotal moment for the company. Gap Inc. has suffered a string of setbacks recently as it struggles to boost sales.

In October, the company pulled all Yeezy Gap merchandise from its stores and shut down YeezyGap.com. The company has had a change in leadership amid slumping sales and has suffered from inventory and merchandising problems at its better-performing Old Navy division.

“Gap is facing slowing footfall at its own stores and has struggled to grow sales for years. It will hope that making some of its range available on Amazon will help grow exposure and sales — especially among the family demographic,” said Neil Saunders, retail analyst and managing director of Globaldata Retail.

He added, “this is a win for Amazon as it brings a big brand name on to its site and helps boost its credentials in fashion and apparel.”

But there are risks for Gap, as the new partnership with Amazon could reduce the chain’s direct sales even further and make it overly reliant on an outside distributor, Saunders said.

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