Gap Buys Intermix for $130 Million; What It Means for the Boutique Chain and You
Get ready to start seeing more Intermix outposts cropping up around the U.S., as mega-retailer Gap has acquired the luxury boutique chain for a cool $130 million in cash, according to Women’s Wear Daily, who exclusively reported last month that the two companies were in talks.
According to WWD, The deal will expand Gap’s presence in the growing global luxury retail market—Intermix currently ships its products overseas, and Gap doesn’t—but it’ll also focus largely on the opening of more stores, something that’s still viewed as a necessity, said Art Peck, the president of Gap’s Growth, Innovation & Digital division.
“We have an omnichannel strategy that we’re putting in place where we bring the Web and the store experience together. Some of our Web orders are shipped from the stores. Customers can find an item on the Web and search for it in stores around [them] to find where it is available. The natural progression is to buy it online or reserve it in the store, and then go and pick it up,” Peck explained to WWD.
What this means for you: This might seem like an odd match, considering the Gap is the pinnacle of easy American sportswear, while Intermix is a high-end specialty retailer that carries such brands Rag & Bone, Helmut Lang, Proenza Schouler and 3.1 Phillip Lim. However, with Gap’s reach (and money), it’s a pretty safe bet you’ll be seeing more Intermix locations (there are 32 right now in the U.S.) arise. This year alone, the company is planning on opening its seventh New York City store, located on the Bowery, as well as locations in Brooklyn, San Francisco, and Montecito, Calif.
How Intermix might change: While Intermix isn’t a household name like Gap, the brand does have a strong—and loyal—customer base, despite its lack of heavy advertising and promotion. That loyalty (not to mention a high-income, designer-savvy customer base) is likely a boon for a brand like Gap, which has struggled recently with retaining customers and has always relied heavily on memorable ad campaigns, particularly in the ’90s.
Considering that fact, don’t look for Gap executives to be changing the brand too drastically anytime soon—after all, Gap learned the hard way that big changes (ahem, like logo rebrandings) can backfire in a big, big way. Do, however, look for Gap to use its channels and expansive network to boost Intermix’s visibility, perhaps by establishing a significant mall presence throughout the U.S., or setting up new stores in areas where Gap’s been particularly successful, such as Europe and Asia.
