What: Gap and Walmart team up to jointly launch a new equivalent of a private label

Why it is important: By blurring the differences between licensing and private labels, both brands make the most of their competitive advantages.

For Walmart, the move equates to launching a new private label with a strong brand image and customer appeal (all the more thanks to its exclusivity), while limiting its investment in product development and related human structure.

Walmart and Gap announced the introduction of Gap Home, a home essentials brand only available at Walmart. They are both scaling their competitive advantages (for Walmart, its distribution size, for Gap, its lifestyle brand image) into this launch of a 400-wide products collection.

Pricing is thought to be fitting Walmart’s customers’ expectations, and seasonal animations will be achieved through drops and special items.

Gap and Walmart Partner to Introduce Gap Home