US apparel retailer Gap Inc is in talks with Flipkart-owned fashion e-tailer Myntra as it explores potential partnerships in India after ending a franchise pact with Arvind Lifestyle Brands (ALB) last year
in September, ALB hired an investment bank to find a buyer for the Gap business, Uncertainty over the brand’s expansion plans has seen two malls in Delhi in the process of shutting Gap stores. A third store in a mall in Delhi was shut after ALB sought closure last month. The retailer has nearly 20 stores in India.
Inventory in stores is also in short supply as a result of the transition, said a person familiar with the matter and one of the three cited above. “Gap is also quite popular in a lot of non-metros and an online play could work well for them," the person said on condition of anonymity. The pandemic has changed the retail landscape, prompting retailers to look at a stronger online play as more first-time shoppers buy online.
Myntra is the top fashion e-retailer in India. For the year to March 2020, it reported a 58 per cent jump in revenue to ₹1,719 crore, according to data from business intelligence platform, Tofler. It reported a net loss of ₹744 crore for the year.
n FY20, Gap posted a revenue of Rs182 crore (or 4.7% of AFL’s consolidated turnover) with a profit before tax of Rs 34 crore, an exchange filing showed.