Apparel and accessories retailer Old Navy, which is owned by parent company Gap, has teamed up with Postmates on same-day delivery during the holidays, according to a report by CNBC.
The option will be free for customers from Dec. 21 to Dec. 23, as the delivery company aims to diversify its client base and move beyond restaurants.
The move will cost $8.99 per order on the days that aren’t free; it will be available in over 4,000 cities where Postmates is located.
While the agreement only applies through the end of January, the companies are seeking more extended, long-term opportunities.
“Partnering with Postmates to provide same-day, on-demand delivery creates an even deeper convenience proposition during the bustling holiday shopping season,” said Old Navy Global Chief Marketing Officer Jamie Gersch.
Old Navy has recently been struggling to grow sales in the face of increased competition from Walmart and Target, which are selling more apparel. The company’s price points are lower than Gap and Banana Republic, which puts it in direct competition with brands like TJ Maxx and H&M.
In Gap’s Q3 earnings report, Old Navy same-store sales went down 4 percent, which missed expectations. Gap said it still plans to spin off Old Navy into its own company by the middle of 2020.
Gap has a market cap of $6.1 billion. Its stock has lost 35 percent of its value this year, even as the S&P 500 Retail ETF went up around 10 percent.
Postmates has been steadily expanding the number of retailers it works with, including Apple, Walmart and even 7-Eleven. The company said that clothing deliveries on Postmates have grown 60 percent this year.
Old Navy is hoping for a sales surge to help boost its revenue for the remainder of the year, especially 2019 has an abbreviated holiday shopping season.
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