Gap is set to enter the luxury clothing market after buying New York-based fashion retailer Intermix.
The American retailer has acquired the chain of luxury stores for $130m (£80m). According to reports, Gap will look to double the chain’s store count as well as look for expansion overseas.
Khajak Keledjian, co-founder and chief executive of Intermix, will remain at the company as chief creative officer. Keledjian and Adrienne Lazarus, Intermix’s president, will report to Art Peck, president of Gap’s Growth, Innovation and Digital division.
Gap chief executive Glenn Murphy said: “Intermix has a distinctive position in this growing market with clear competitive advantage. Their record of merchandising with a keen eye towards mixing multiple designer labels, complemented with exclusive product, is appealing to their loyal customers.
“This strategy reflects the strength of their brand vision and leadership team.”