Banana Republic Returns to the U.K. Via New Gap Inc., Next Plc JV
LONDON — Banana Republic is ready to return to the U.K. market through a newly formed joint venture between parent Gap Inc. and the British retailer Next plc. Its sister company Athleta will debut here next in 2023 via the same agreement.
The two brands follow Gap, which made its own comeback in the region earlier this year.
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As reported in March, Gap opened its first, new-generation shop-in-shop inside Next plc’s largest West End store on London’s Oxford Street, part of the joint venture agreement that was formed in 2021 after Gap Inc. pulled its businesses out of the U.K.
Next plc is one of the few historic high street retailers to have survived the rapid rise of online shopping, soaring commercial property prices and COVID-19.
The British retailer manages the Gap-branded shops at Next locations, as well as Gap’s e-commerce business.
Next plc has 500 physical stores in the U.K. and Ireland, while the Next.co.uk marketplace carries more than 700 fashion, home and beauty brands. The Leicester, England-based company is also part-owner of high street clothing brand Reiss, and is the U.K. partner for brands including Laura Ashley home and Victoria’s Secret.
The Gap.co.uk site has already migrated to the Next Total Platform, a services provider for online businesses. Gap has branded shops-in-shop at Next stores in London, Birmingham, Manchester and Thurrock, England, and in Glasgow, Scotland.
Banana Republic will be relaunching in the U.K. with a curated collection for women and men that will be available on Next.co.uk. Athleta will enter the U.K. market in early 2023 on Next.co.uk.
As reported, Gap is the largest brand shop within Next’s Oxford Street store, and spans more than 4,000 square feet. The space is smaller than the former Gap stores here, and the design is meant to be more “open, modern and minimal.”
In July 2021, Gap announced plans to close all 81 of its company-operated stores and outlets in the U.K. following a strategic review of its European operations. Two months later, it inked the joint venture with Next.
The U.K. was the first European market Gap entered, and the late ’80s and ’90s were among its most successful decades. It boasted big-box stores in prime locations, including Oxford and Regent streets in London.
Jon Jeffery, managing director of the JV, said his hope was that the new iteration of Gap in the U.K. would “restore belief” in the brand’s pricing. “We know that our customers recognize value for money delivered through innovation, quality and attention to detail. To that end we will focus more on delivering great products, and less on promotions and discounts.”
