That's a whole lotta cash.
Gap has acquired Intermix for $130 million in cash, Women's Wear Daily reports. The two retailers had been in talks for at least a month as Intermix, a multi-store luxury boutique, looked to expand its reach. Now the small but highly fashionable store will have a mega retailer behind it, as Gap looks to up its own fashion cred.
It's plain to see how the pairing is mutually beneficial. "We are the incubator with emerging brands, and we can help them out with collaborations," Intermix founder and CEO Khajak Keledjian told the Wall Street Journal. Indeed, Intermix shelves the likes of Yves Saint Laurent, Givenchy and Proenza Schouler plus lower-priced brands like Jeffrey Campbell and Vince. As Gap CEO Glenn Murphy told the Wall Street Journal, Gap could use Intermix's keen sense of fashion trends.
Gap will also help Intermix on the e-commerce front, helping it expand its Internet reach and international name recognition. As for now, any additional projects are still in discussion. Keledjian told WWD that the short-term plan is simply to open more Intermix stores and grow sales, but that the creation of a "private label" brand is a possibility.
So no high-end collaboration between Gap and the likes of Proenza Schouler or Rag & Bone... yet. But a girl can dream, right? With Intermix's amazing brands and Gap's ubiquity (seriously, they're like Starbucks), this could mean lots more fashion for lots more people.
Sounds good to us. Read more at WWD.com and sound off in the comments. Do you think this is a retail marriage made in heaven?
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