Gap to buy US retailer Intermix

Gap Inc, which owns Gap, Old Navy and Banana Republic, is set to enter the luxury retail market after acquiring luxury branded fashion boutique Intermix, according to reports in the Wall Street Journal. The deal worth 130 million

Dollars is Gap’s first acquisition since 2008 when it added women's active apparel retailer Athleta to its portfolio, then it was tapping into the demand for yoga and workout gear, and now the group is targeting to the all-important luxury market.

Based in New York, Intermix has 32 stores in the United States and Canada and a successful e-commerce site, which stocks designer labels including Herve Leger, Yves Saint Laurent, Jimmy Choo, Rag & Bone, and Mulberry. Following the acquisition, it is reported that Gap plans to double Intermix’s store count, as well as look to expand the chain overseas.

Khajak Keledjian, co-founder of Intermix, commented: “We’re thrilled to have found a partner that has the global scale and infrastructure required to support our vision for growth.”

Keledjian, will remain at the company as chief creative officer, as will Adrienne Lazarus, Intermix’s president, both will report to Art Peck, president of Gap’s Growth, Innovation and Digital division, which looks after new brands at Gap.

Glenn Murphy, chairman and chief executive officer of Gap, said: “Intermix has a distinctive position in this growing market with clear competitive advantage.

“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.”

Image: Intermix