Reliance Retail is in talks with the US-based Gap Inc, the world’s largest speciality retail chain, for a franchisee arrangement for Reliance Retail’s apparel business. Gap Inc operates four of the most recognised apparel brands in the world — Gap, Banana Republic, Old Navy and Piperlime.
While Gap and Banana Republic are mid-premium brands, Old Navy caters to the price-sensitive market. Paperlime is a footwear brand which was launched in 2005. It is understood that in the first phase the arrangement with Reliance will only be for Gap and Banana Republic.
When contacted by ET, the Reliance spokesperson declined to comment. However, a top source said that the initial talks between the two companies have been favourable. “It’s just that Gap has sought some more time to prepare itself for an India entry. There could be a deal later this year or early next year,” a source close to the development said.
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