CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Next to take on Gap brand in UK sales joint venture

By Jenni Reid

10:36, 17 September 2021

Next UK storefront
Gap Inc has closed its retail outlets in the UK, and will be replaced with Next – Photo: Shutterstock

British clothing retailer Next has finalised a joint venture with Gap Inc to run the US company’s business in the UK and Ireland. The franchise partnership will see Next own 51% of the business, with Gap owning the remaining 49%.

The deal will mean that Next will sell Gap clothing through its new online hosting site for other brands, Next Total Platform, as well as through Gap-branded Shop-in-Shops. 

Lord Simon Wolfson, chief executive of Next, said: “Next is delighted at the prospect of its Total Platform supporting Gap on the next stage of development of its world-renowned brand in the UK and Ireland.”

Next’s share price was up 2.10% in mid-afternoon trade as at 14.53 BST on the London Stock Exchange following the news.

Operational changes at Gap

Mark Breitbard, CEO and president of Gap Global, commented, “Gap is partnering with NEXT, one of the UK’s leading online clothing retailers, to amplify our omnichannel business and meet our customers in UK and Ireland where they are shopping now.”

After a review of its European operations, Gap announced in June that it would close its 81 physical stores in the UK and Ireland and run an online-only business, in a blow to the beleaguered British high street.

The company said it is in negotiations with Hermione People & Brands – the retail arm of Michel Ohayon’s property development company Financière Immobilière Bordelaise (FIB) – to take over its French operations. The transaction would involve 21 Gap-branded stores and at least 358 jobs in France, according to a statement from FIB Group.

US100

14,557.80 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 3.0

DE40

16,061.70 Price
+1.080% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0022%
Overnight fee time 21:00 (UTC)
Spread 3.0

US500

4,282.90 Price
+1.360% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 1.7

US30

33,768.00 Price
+2.020% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 13

Gap is also “in discussions” with an unnamed partner for the acquisition of its Italian stores, although it had already cemented a franchising deal with Italian retailer OVS back in March, according to WWD. 

What is your sentiment on UK100?

7622.3
Bullish
or
Bearish
Vote to see Traders sentiment!

Strong sales for Next

Next reported full price sales in the eleven weeks to 17 July 2021 were up 18.6% on two years ago, and raised its guidance for full-year profit before tax by £30m ($41.4m) to £750m. Half-year results are due on September 29.

It also said it would repay £29m of business rates relief to the government.

The UK’s Office for National Statistics today announced that retail sales fell by 0.9% in August, despite expectations of a rise due to the lifting of lockdown restrictions.

The proportion of retail sales made online in the UK reached 27.7% in August, up from 19.7% before the pandemic.

Read more: UK retail sales fall in August despite lifting of lockdown

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading