American worldwide clothing and accessories retailer, Gap is to commence a long term collaboration with footwear and apparel brand Yeezy and Mr. West. The retailer is going to enter into an alliance with the Yeezy brand for a new clothing line called Yeezy Gap to be launched in the first half of 2021. The parties have agreed for a 10-year deal starting this month with an alternative of renewing after 5 years.
Yeezy’s design studio, under Mr. West’s creative direction, plans to create “modern, elevated basics for men, women, and kids at accessible price points.” Mr. West’s “design vision” will extend to how the line will be showcased in Gap’s stores and online.
Gap is making a far bigger bet on Yeezy and Mr. West, a celebrity, creative entrepreneur, rapper and designer, than a typical designer collaboration.
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 publicly. At the five-year point, Gap is hoping that Yeezy Gap will be generating $1 billion in annual sales. For context, Gap’s brand brought in $4.6 billion in global revenue last year.
Gap did not respond to a request for comment on the terms of the deal.
Gap Inc., which also owns Old Navy and the Banana Republic, is aiming to refocus its namesake brand, which has seen sales plummet in the past few years, closed more than 100 North American stores, and struggled to define its place within the apparel industry. It, like other retailers, has also been badly hit by the coronavirus pandemic.
