New York
CNN business
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Gap announced Thursday that it has officially launched a store on Amazon.
Shoppers were previously able to purchase Gap products on Amazon through third-party sellers, but the new partnership with Amazon Fashion marks the first time Gap itself sells products on the online marketplace.
Items available for purchase starting 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 toddlers.
Gap (GPS) Inc. said its Amazon store will also include Baby Gap (GPS) branded products, including baby furniture, strollers, bassinets and cribs.
However, none of Gap’s items are exclusive to Amazon (AMZN) and can also be purchased at Gap stores and Gap.com. According to Amazon (AMZN), items in Gap stores are included in Prime shipping.
Gap shares rose more than 7% in late afternoon trading on Thursday.
“Our collaboration with Amazon Fashion opens up a new channel to bring Gap’s modern American essentials to even more customers in the United States and Canada,” said Mark Breitbard, CEO of Global Gap Brands, in a statement. Offers.
A partnership with Amazon could help Gap expand its market reach in the US and Canada, and comes at a pivotal time for the company. Gap Inc. has recently suffered a series of setbacks as it struggles to grow sales.
In October, the company removed all Yeezy Gap products from its stores and shut down YeezyGap.com.The company is suffering from a change in management amid sluggish sales From inventory and merchandising issues in the better performing Old Navy division.
“Gap is facing slowing foot traffic at its company-owned stores and has struggled to grow sales for years. By making some of its products available on Amazon, we hope to help increase exposure and sales, especially among families,” said Retail Analyst and Managing Director, Global Data Retail. One Neil Sanders said.
He added, “This is a win for Amazon as it brings big brand names to the Amazon site and helps build credibility in fashion and apparel.”
But there are risks for Gap as the new partnership with Amazon could further reduce Gap’s direct sales and make it overly dependent on outside distributors, Saunders said.
