Gap to Boost Personal-Care Product Offerings

Sniffing an opportunity to boost its recently sagging sales, clothing retailer Gap Inc. plans to expand its line of perfume and other personal-care products next year in a partnership with Inter Parfums Inc.

The San Francisco-based retailer said Tuesday that the product line would be sold at its Banana Republic stores as well its flagship Gap stores. The expansion doesn’t involve Gap’s discount chain, Old Navy.

New York-based Inter Parfums will be responsible for developing, making and packaging the perfume and other cosmetics. The two companies did not disclose the financial details of their alliance.

The expanded Banana Republic product line is scheduled to become available during fall 2006, and the expanded Gap line will start in 2007.

“Personal-care products are a natural extension of our brands and represent an organic growth opportunity for our company,” said Paul Pressler, Gap’s president and chief executive.

Like several other popular clothing brands, Gap already sells some personal-care products bearing its name. The company realized it needed to work with a personal-care specialist to expand its offerings, spokeswoman Kris Marubio said.

Gap’s expansion comes amid a recent slump in its sales. This year through July 2, the company’s same-store sales, a key barometer of a retailer’s health, declined 4% from a year earlier. The downturn reversed a long stretch of improving results under Pressler, who was lured from Walt Disney Co. in September 2002 to reinvigorate Gap.

As part of its efforts to boost sales, Gap is opening a fourth retail chain, to be called Forth & Towne, that will cater to women shoppers older than 35.

Shares of Gap gained 4 cents Tuesday to $20.71.