US Fashion brand Gap returns to India, signs deal with Reliance Retail

Reliance Retail will be the official retailer for Gap in India, mixing exclusive stores and digital commerce platforms.

Reliance Retail has entered into a franchise agreement with Gap Inc to bring the American fashion brand to India. Gap will return to India the second time after parting ways with Arvind Fashions in 2020.

Reliance Retail will be the official retailer for the fashion house in India, mixing exclusive stores and digital commerce platforms. “The partnership is aimed at leveraging Gap’s position as a leading casual lifestyle brand, and Reliance Retail’s established competencies in operating robust omnichannel retail networks and scaling local manufacturing and driving sourcing efficiencies,” Reliance Retail said in a press release about the long-term agreement.

“At Reliance Retail, we pride ourselves in bringing the latest and best to our customers and we are happy 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 to bring industry-leading fashion products and retail experiences to their consumers,” said Akhilesh Prasad, CEO, fashion & lifestyle at Reliance Retail said in the release.

Adrienne Gernand, managing director of international, global licensing and wholesale at Gap Inc, said that the company looks forward to growing the Gap business across key international markets.

“Partnering with regional experts, like Reliance Retail in India, allows us to deliver our relevant, purpose-driven brand to customers around the globe 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 of all retail companies under the Reliance group. RRVL reported a consolidated turnover of Rs 199,704 crore and a net profit of Rs 7,055 crore for FY22.

Gap first came to India in 2014 through a franchisee agreement with Arvind Fashions and exited six years later.

Second Coming 

• Founded in San Francisco in 1969, Gap is considered as an authority on modern American style

• Gap’s previous attempt to woo Indian customers turned sour after it terminated a deal with an Arvind Fashions unit in 2020

• For Gap, whose brands include Old Navy and Banana Republic, the partnership with Reliance comes as clothing retailers struggle with weak demand in the face of surging inflation

• For Reliance, the deal comes days after announcing a plan to open outlets of 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