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Gap Tries Business-to-Business Face Mask Sales

By Jennifer Saibil – Updated Jul 7, 2020 at 1:50PM

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The apparel retailer is making another stab at a new venture to keep cash coming in.

Gap (GPS -1.11%) has commenced a new business-to-business program supplying companies and organizations with face masks, hoping to add some cash to its coffers.

Gap has had a tumultuous year, and not only because of COVID-19. The popular clothing chain ditched its CEO, hired a new one, and finally saw some progress. Then the pandemic came and threw a bunch of new wrenches into the situation.

Old Navy employee wearing a mask.

An Old Navy employee with a mask. Image source: Gap.

After saying it wouldn't be able to pay its rent, Gap made licensing agreements and sold debt to stay solvent. Most recently, Gap announced a partnership with Kanye West through his lifestyle brand Yeezy.

First-quarter earnings, which were announced June 4, showed a 43% decline year over year, but e-commerce sales increased and most stores are open to start recouping business.

An employee perk

The update on Tuesday said that Gap is now using its large-scale capabilities to mass-produce masks for businesses and organizations such as the City of New York, the State of California, and healthcare provider Kaiser-Permanente.

John Strain, head of tech and e-commerce at Gap, said, "We quickly started hearing from companies like ours who wanted to be able to supply their employees with the same product, so we're excited to extend our high-quality reusable, non-medical-grade cloth face mask offering to organizations that want to help protect their employees as they reenter the workforce."

The masks are meant for organizations to offer their employees upon returning to work, and are designed with Gap styling.


Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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