- 07 Jul 2022
- ICICIdirect Research
RELIANCE RETAIL ENTERS INTO LONG TERM FRANCHISE AGREEMENT WITH GAP INC
RELIANCE - 1240 Change: -2.05 (-0.17 %)News: As per media reports, Reliance Industries' subsidiary Reliance Retail has entered into a long-term partnership with Gap Inc. to bring American fashion brand to India. Through the long-term franchise agreement, Reliance Retail will become the official retailer for Gap across all channels in India
Views: GAP business in India, which was earlier operated through a franchise agreement with Arvind Fashions, had reported revenues of Rs. 182 crore with a PBT loss of Rs. 34 crore in FY20. Post the franchise agreement with Gap, Reliance Retail will introduce Gap's latest fashion offerings to Indian consumers through a mix of exclusive brand stores, multi-brand store outlets and digital commerce platforms. The addition of GAP brand would strengthen Reliance Retail’s international brand portfolio in India. The partnership would aid Reliance Retail to position Gap as a leading casual lifestyle brand by leveraging on Reliance Retail's established competencies in operating robust omni-channel retail networks and scaling up local manufacturing and driving sourcing efficiencies
Impact: Positive