Venice – November 3rd, 2021 – Gap Inc. (NYSE: GPS) and OVS, announced that the two companies have signed an agreement for OVS to acquire all Gap stores in Italy subject to completion of the unions’ consultation process that will start in the next few weeks. The transfer is anticipated to take place in February 2022.
The two companies have worked together since early 2020. Through a franchise agreement signed in 2020, OVS offers GapKids in its stores and Gap Adult and Kids through its e-commerce site. With this new agreement, OVS will take on Gap standalone stores in the country.
Stefano Beraldo, CEO OVS said, “Every Italian that has ever visited the USA knows and loves this iconic brand. In the development of our overall business model, we believe that this agreement will be another element of value creation for our company and that it represents a further step in the evolution of the OVS platform strategy to partner with other brands consistent with our positioning and values. We will leverage our unparalleled experience as a retailer and our creativity to strengthen GAP brand development in our country through both physical and digital channels“.
On October 20, 2020, Gap Inc. announced the Strategic Review of its company-operated Gap business in Europe. The transfer of all the 11 Gap stores in Italy to OVS will allow Gap to operate its business through a more capital efficient partner model and to benefit from the expertise of OVS, a leading Italian apparel company. Gap’s store in Milan, however, is anticipated to cease trading in November 2022 when the lease agreement comes to an end.
Mark Breitbard, President and CEO of Gap Global, commented, “Gap has served customers in Italy since 2010 and we are looking forward to expanding our partnership with OVS, a valued partner who has demonstrated their ability to deliver outstanding omni-channel Gap brand experiences to customers in Italy. The decision to transfer our Gap business is an example of how we are partnering to amplify and grow our brand in international markets.”
Today, Gap brings its Modern American style to customers in more than 40 countries through a combination of company-operated and franchise stores and e-commerce platforms.