Gap’s move to expand into other categories has generated mixed reactions from the industry. As a part of its deal with licensing firm IMG, Gap will be selling products in the home décor, furniture and textiles spaces. Gap-owned Banana Republic and Janie and Jack will also be expanding into new categories, yet to be named. Additionally, Gap will be launching baby equipment and care products, presumably under its existing baby clothing brands.

Ken Cassar, Principal at Cassarco Strategy and Analytics Consultants, views this move as a big payoff. However, Georganne Bender, Principal at Kizer & Bender advises The Gap GPS to reinvent itself. Most current footprints for Gap brands are too small to make an impact selling furniture, home decor and apparel a la Anthropologie.

Kathleen Fischer, Director of retail marketing at enVista also believes that launching a new segment in current times is not ideal as demand is weak, supply chains are broken and money is tight. Fischer advises Gap to shore up its current business model before branching into something new.

According to Jeff Weidaeur, Principal at SSR Retail, the best time for a brand to stretch into adjacent categories is when it has a strong share in its primary category. Neil Saunders, Managing Director at GlobalData, opines this move will enable Gap to raise some quick and cheap money.

Gap is also planning to slowly reopen stores as some US states and cities begin lifting lockdown restrictions. The brand plans to open 800 of its Gap, Old Navy, Athleta and Banana Republic stores by the end of the month.