Intermix acquired by Gap
Gap has announced that they are acquiring fashion retailer, Intermix for $130, adding them to their retail portfolio already including Gap, Old Navy, Banana Republic, Piperlime, and Athleta. Some analysts are raising their eyebrows, wondering how a brand like Gap will incorporate a high fashion retailer that mixes brands like Yves Saint Laurent, Stella McCartney, Herve Leger, and Jimmy Choo into their existing affordable brands. Some say the company already struggles with pricing because Gap prices can’t beat Old Navy prices, and so on and so forth, but what many miss is that the big box retailer could benefit from a price bump beyond what Banana Republic offers.
The purchase makes perfect sense if you look at Gap’s track record. Piperlime is their online retail darling, and Athleta was purchased to immediately go head to head with the wildly popular Lululemon, which it has. Combine their ability to successfully operate an online retailer, and acquire a store to take market share from a beloved brand, the Intermix acquisition is a no brainer, as the high fashion brand is a hybrid retailer with 30 store in the U.S. and Canada, mixed with a strong online brand. With this acquisition, Intermix now has massive resources to boost both their online e-commerce and offline presences.
Where the inspirational part comes in
Many are already familiar with the Intermix brand, but less people know that it was started by a 19 year old college dropout in the late 90s who adored fashion. Only 15 years later, the already large brand is seeing a massive cash infusion, a tremendous new pool of resources only fantasy just a year ago, and more exposure than they ever could have done alone.
The story of a girl with a dream is timeless, and people have business dreams every day, but so many become hopeless when a year into their business, they aren’t Gap, they’re still an Etsy seller, but let the Intermix tale inspire your inner entrepreneur – if a kid can dream of high fashion and turn it into such a success, so can a middle aged man, or an older woman.
Age is relative, and so is experience, so with the right idea, the right execution, and a lot of gumption, a tiny brand can grow to multiple locations and ultimately see interest from and a global partnership with a major brand like Gap.
“We’re thrilled to have found a partner that has the global scale and infrastructure required to support our vision for growth,” said Khajak Keledjian, co-founder of INTERMIX. “Gap Inc. shares many of our entrepreneurial roots, passion for innovation and customer experience. Together, we’ll continue to shape the future of retail by offering the most exciting fashion trends with the finest designers in the world.”
