Gap Enters The Luxury Market

HIGH STREET giant Gap has bought high-end US retailer Intermix for $130 million (£80.4 million). The move marks the first time the iconic American brand has entered the luxury market. Intermix - which has 32 stores in the US, as well as an extensive ecommerce site - stocks designer labels such as Jimmy Choo, Chloe, Bottega Veneta, Valentino and Stella McCartney. The acquisition will see the brand become part of Gap's growing portfolio, which includes Banana Republic, Old Navy and Piperlime. "Intermix has a distinctive position in this growing market with clear competitive advantage," Gap Inc chairman and CEO Glenn Murphy told WWD. "Their record of merchandising with a keen eye towards mixing multiple designer labels, complemented with exclusive product, is appealing to their loyal customers. This strategy reflects the strength of their brand vision and leadership team." Gap plans to help grow Intermix's "core business" and to open new stores in the US. International expansion is in the distant pipeline in the future. "We're always looking for new brands," said Intermix co-founder and CEO Khajak Keledjian. "In partnering with Gap, that will enable us to have more time to focus on growth. One reason for our success is [being] an incubator for new designers and new talent. [Partnering with Gap] will let us focus more on product, merchandising and innovation."











03 JANUARY 2013 ELLA ALEXANDER
http://www.vogue.co.uk/news/2013/01/03/gap-buys-intermix--$130-million-luxury-deal