The partnership between Gap and Next has transformed the UK’s high street retail landscape in unexpected ways. Once perceived as rivals vying for the attention of style-conscious British shoppers, these brands have forged an alliance that is now redefining omnichannel retail and reviving Gap’s presence after a period of decline.
Origins of the Alliance: Why Gap Needed a Partner
Gap, the American giant famous for its DNA of casual basics and “Modern American Optimism,” shuttered all of its standalone UK and Ireland stores by September 2021, citing a shift towards digital-first operations and falling profitability. In the year leading up to its full UK withdrawal, the brand suffered sales drops of 9.5 percent, ending with an operating loss of £40.7 million and £3.27 million in impairment charges on underperforming locations. While e-commerce remained strong, the business lacked on-the-ground infrastructure to support browsing, returns, and customer service in Britain.
Meanwhile, Next was enjoying robust growth. Its strategy of integrating third-party brands into its successful Total Platform was picking up speed, and its logistics network—with over 450 UK stores and next-day click-and-collect—offered the very infrastructure Gap needed during its reinvention phase.
Deal Structure: A True Joint Venture
In a deal struck in late 2021, Next took a 51 percent stake in a new joint venture, with Gap retaining 49 percent. Crucially, Next agreed to operate Gap’s UK online business on its Total Platform, manage order fulfilment and click-and-collect, and open Gap shop-in-shops within flagship Next stores. This gave Gap a path back onto the high street, while giving Next a valuable partner and exclusive brand access to drive footfall and digital traffic.
Jon Jeffery, managing director of the new venture, described the partnership as “the coming together of two iconic businesses to relaunch the Gap brand in the UK and Ireland.” The joint strategy aims to combine Next’s “market-leading digital and operational capabilities” with Gap’s global brand recognition and established customer base.
Digital and Physical Rebirth
The results speak clearly: Gap’s UK e-commerce now runs through Next’s platform, offering shoppers a frictionless purchase journey, click-and-collect from Next stores, high-speed returns, and regular promotional events. Customers benefit from Gap’s entire product range—women’s, men’s, kids’, and baby—alongside Next’s extensive selection, all now available online with real-time stock updates and robust customer service.
Crucially, the first Gap “shop-in-shop” stood up within Next’s Oxford Street flagship in London in spring 2022. This was followed by further launches in key regional destinations like Birmingham, Lakeside, and Manchester, tapping into high street footfall and giving former Gap loyalists a new way to interact with the brand.
Commercial Impacts and Market Position
Next’s adoption of the Gap brand has delivered commercial benefits for both companies. Next plc’s 2025 financials show a 10.3% rise in group sales for H1 and strong profit growth, driven in part by brand partnerships, digital expansion, and the integration of franchise brands like Gap within its physical and digital ecosystem. Online sales alone saw an 8.9% growth in the UK, with substantial additional contribution from international and partner brands.
Gap, for its part, avoided the costly overheads of traditional stores while regaining a high street presence with minimal risk. Retail experts and analysts have broadly praised the model, calling it a win-win. Natalie Berg, a leading UK retail consultant, described the arrangement as “Gap’s best shot at reviving its brand, offering omnichannel strength and a renewed sense of relevance.” She noted the irony of former rivals uniting but credited the pandemic for reshaping competitive strategies and pushing even well-known brands into “strange bedfellows” agreements.
British Shopper Response and Brand Renewal
UK shoppers have responded enthusiastically to Gap’s return. Many see the shop-in-shops as a nostalgic but modern way to reconnect with a brand once absent from the local retail scene. Next’s trusted service reputation also reassures consumers, with “free returns to more than 450 stores, next-day click-and-collect, and access to a wider range of international and seasonal apparel than ever before.”
The partnership’s impact echoes in place-based retail more widely. Where once brands retreated from bricks-and-mortar, the Next-Gap model suggests a third way—matching global brand identity with local, high-service delivery, and revitalising flagship commercial spaces for hybrid retail.
What’s Next for Gap and Next?
With international online sales still surging, new shop-in-shops opening, and continued innovation on the Total Platform, industry watchers see more growth on the horizon for this unexpected duo. UK retail may never return to its pre-digital face, but alliances like Next and Gap offer a promising blueprint for legacy brands and ambitious retailers seeking to blend tradition with technology and convenience.
As British retail continues to adapt, the Next and Gap partnership stands out as a bold, timely collaboration—one that reimagines how international brands stay close to their customers, whatever the economic forecast.
