Six years ago, when then-Gap Inc. CEO Art Peck said it would be “delusional” for Gap not to contemplate a tie-up with Amazon, some analysts were aghast. Forrester Principal Analyst Sucharita Kodali even called the notion “idiotic” given Amazon’s tendency to poach from its sellers, saying that Walmart, Target and others would all be superior ideas.
Kodali hasn’t warmed to the idea after all this time. “Gap is not operating from a position of strength and desperate times call for desperate measures,” she said by email Friday. “Something like this is a Hail Mary pass that is more about the challenged situation of the company than a brilliant strategic move.”
Gap seems to be running out of ideas as its sales continue to plummet. Its much vaunted partnership with Kanye West, also known as Ye, has blown up with little to show for it after two years. Parent company Gap Inc. is in the midst of a CEO transition and new leadership at Old Navy. In September the company announced major layoffs, and this month said it is selling its China business. Its usually better performing brands Old Navy and Athleta have also stumbled recently.
The collaboration with Amazon provides namesake Gap a chance to expand its customer base in the U.S. and Canada, brand chief Mark Breitbard said in a statement. “We are excited to take this step with Amazon Fashion, to expand our product offering and to deepen our connection with consumers through the Gap brand store,” he also said.
The Gap-Amazon collection features “thousands of items for the family,” and is eligible for Amazon Prime’s free, fast delivery, per the release.
