With fresh creative talent in place at its flagship brand, Gap Inc. has hit the ground running in 2013, announcing its $130 million acquisition of the 32-store Intermix chain and plans for a Banana Republic summer collection designed by Milly‘s Michelle Smith. Now Gap is upping the cuteness quotient with a new line of unbelievably adorable baby clothes–for girls and boys up to 24 months old–inspired by Beatrix Potter‘s The Tale of Peter Rabbit. The author, who pioneered the product tie-in by following up her 1902 book with a (patented!) Peter Rabbit doll and board game, and whose estate is a licensing powerhouse, would surely be pleased to see her illustrations adorning whimsical babyGap one-pieces, patterned dresses, and printed denim. The must-have item is Peter’s famous blue jacket, reimagined as a chunky knit navy cardigan and yours for $34.95. Mr. McGregor was unavailable for comment.