- Danielle Wightman-Stone |
Gap Inc. has unveiled plans to close Piperlime, its predominately online designer-fashion brand, by the end of April this year. Piperlime, which Gap states is its smallest brand, with less than 100 million dollars a year in sales accounting for just 1 percent of its parent company’s revenue, will see its online platform as well as its New York store close as the group refocuses on its “top priorities”.
The decision to scrap the online brand comes as the group continues to struggle with its namesake brand Gap, as well as Art Peck prepares to take reins as chief executive officer. In a statement, the group states the decision to close the online brand is part of the groups “long-term strategy to drive profitable top line sales”, which it claims as it goes into the new fiscal year will come from its five main brands, Gap, Old Navy, Banana Republic, Athleta and Intermix.
Gap to scrap online brand Piperlime
“We are incredibly grateful to our fashion-focused, loyal customers, and proud of our dedicated employees who have been working hard to evolve the brand and test out new ideas,” explained Peck. “We plan to keep on pushing new ideas and look forward to seeing how we can apply what we’ve learned to the rest of the company as we continue to bring great products and shopping experiences to our customers.”
The wind-down costs associated with the closure have not been made public, as the group states that they aren’t material to its financial results.
Gap introduced Piperlime in 2006 as an online shoe store before turning it into a boutique-style apparel website that featured designer brands such as Rebecca Minkoff and Kate Spade, as well as advice from celebrity stylists, including Rachel Zoe. The online brand evolved in 2012 as it opened its first brick-and-mortar store in New York, however, the brand just couldn’t compete with the bigger brands in the group and never really developed its online clear identity.