The Gap brand, which has faltered in recent years while struggling with an identity crisis, has a new idea on how to revive its fortune: Kanye West.
The retailer is partnering with West and Yeezy, its fashion company, for a new clothing line called Yeezy Gap to be unveiled in the first half of 2021, the companies said on Friday. Yeezy’s design studio, under the creative direction of Mr. West, plans to create “modern and elevated basics for men, women and children at affordable prices.” Mr. West’s “design vision” will extend to how the line will be displayed in Gap stores and online.
Gap is betting much more on Yeezy and Mr. West, a celebrity, creative entrepreneur, rapper and designer, than a typical collaboration of designers. They agreed to a 10-year deal starting this month, with the option to renew after five years, according to a person familiar with the negotiations, who was not authorized to speak in public. At the point of five years, Gap expects Yeezy Gap to generate $ 1 billion in annual sales. By context, the Gap brand generated $ 4.6 billion in global revenue last year.
Gap did not respond to a request for comment on the terms of the deal.
It occurs when Gap Inc., which also owns Old Navy and Banana Republic, aims to refocus its namesake brand, which has seen sales drop in recent years, closed more than 100 stores in North America, and struggled to define its place. inside the clothing. industry. Like other retailers, it has also been severely affected by the coronavirus pandemic.
West, who worked at Gap in his teens, has expressed his deep interest in the brand for years, declaring in a 2015 interview that he “would like to be Steve Jobs of the Gap,” and once dreamed of being his boss. creative director. He has visited his San Francisco headquarters and met Art Peck, the former CEO of Gap Inc.
The Gap deal will satisfy Mr. West’s desire to make clothes for the masses, even as Yeezy has become a presence in New York and Paris fashion weeks. Yeezy merchandise at Farfetch recently included a $ 925 men’s graphic cardigan and $ 241 women’s thermal sweater. At Gap, jeans and blouses often cost less than $ 50 and are regularly discounted.
Gap will pay royalties and potential capital to Yeezy, which is wholly owned by Mr. West, based on sales performance.
West has been successfully partnering with Adidas since 2013, where its brand positions itself as its own category and earns royalties on net sales of its shoes and clothing, The New York Times reported last June. Yeezy shoes, which can cost hundreds of dollars and even more in secondary markets, were expected to surpass sales of $ 1.3 billion last year.
Yeezy’s sneakers side was valued at up to $ 3 billion last year, Bloomberg reported in April, citing a Bank of America document.
