Gap Inc. has a Kanye West problem.
Bloomberg News reported that Gap’s Instagram posts had been filled with comments imploring the retailer to end its partnership, followed by a counter-effort by Ye fans calling for the company to maintain it.
Last week, Ye was served a 24-hour suspension from Instagram after he directed a racial slur at “The Daily Show” host Trevor Noah. Noah had used a portion of his show to express concern about Ye’s treatment of his ex-wife Kim Kardashian and her boyfriend, the comedian Pete Davidson. Multiple news outlets reported that, because of the behavior, Ye will not be appearing at the Grammy Awards early next month. And a Change.org petition calling for Coachella to drop him as a headliner has gathered more than 40,000 signatures. Gap and Ye did not return requests for comment.
A high-profile collaborator using social media to target a woman and her partner puts the Gap brand at risk. The company was founded in San Francisco in 1969 by husband and wife duo Don and Doris Fisher, and currently has a female chief executive officer, Sonia Syngal. The scandal also sits uneasily with the values of Gap’s Athleta fitness-wear brand, which positions itself as a women’s champion, and those of family-friendly Old Navy. These divisions are the group’s growth engines.
But walking away from Yeezy Gap would be a serious setback for the group’s turnaround plans. (Yeezy is Ye’s extension into fashion and also encompasses his footwear partnership with Adidas AG. Yeezy recently announced a new head of design, perhaps seeking to distance itself from its founder.)
The retailer has pinned its hopes on Ye making the Gap brand cool again. He brings a link with street wear and also has connections to high fashion — which paved the way for the recent innovative three-way tie-up with Kering SA’s Balenciaga.
Bloomberg News reported that Gap envisages the Yeezy line becoming a $1 billion brand within eight years. For context, the Gap division generated sales of $4 billion in the year to January 2022. But given the limited extent of the Yeezy offering so far — early releases immediately sold out — it’s hard to determine just how much benefit Gap is getting. What’s clear is that the retailer’s revitalization will be much more challenging without the partnership. Shares are down about 9% over the past week or so, underperforming the consumer sector.
The Gap brand operates in the mid-market apparel segment, which is a tough place to be as consumers’ incomes are squeezed by inflation.
If the group were to part ways with Ye, it would be hard to find a replacement who would bring the same broad appeal. But a few possibilities come to mind:
Rapper Lil Nas X last year teamed up with the Brooklyn-based art collective MSCHF on the now infamous “Satan Shoes,” which drew legal action from Nike Inc. — but also generated a ton of hype. Tyler the Creator’s fashion lines have collaborated with VF Corp.’s Vans and Nike’s Converse, and he recently unveiled a higher-end range.
Another possibility would be to sign up A$AP Rocky and Rihanna. The rapper has a raft of tie-ups under his belt and, until last year, Rihanna had her own clothing line with the world’s largest luxury group, LVMH Moet Hennessy Louis Vuitton SE. The couple are expecting their first child, so there would be plenty of opportunities for Baby Gap, too.
A truly controversial choice would be to ditch Ye for Kim Kardashian and Davidson, a move guaranteed to get Gap trending on social media. Let’s not forget that Kardashian has created a successful underwear label, Skims, valued at $3.2 billion, which would sit well with Athleta. Skims has also unveiled a collection with LVMH’s Fendi that generated more than $3 million of sales within 10 minutes.
The best outcome for all concerned would be for Ye to rein in his behavior, apologize and draw a line under recent events. Yet even in these circumstances, Gap should learn from the episode: It needs more than Ye for its reinvention. It must inject more style into Gap ranges outside of the Yeezy line, and not let up in tackling operational issues. It still needs to navigate supply chain constraints and avoid going overboard with markdowns (as it has in the past).
Otherwise, a Gap-Ye breakup may turn out to be as publicly painful as the Kimye split.
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This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.
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