Gap Inc. Announces Plans to Build New Distribution Center in Longview, Texas to Meet Rising Demand for Digital Shopping

Rhea-AI Summary

Gap Inc. (NYSE: GPS) has announced a $140 million investment to establish a new Customer Experience Center in Longview, Texas, set to create over 500 full-time jobs by the end of 2023, and more than 1,000 jobs by 2026. This facility, covering 850,000 square feet, aims to enhance online shopping capabilities, processing up to one million units daily. Construction starts in April 2021, with operations expected to begin by August 2022, further expanding Gap Inc.'s fulfillment network to meet rising demand for digital growth.

Positive

• Investment of $140 million in Longview, Texas, to enhance fulfillment capabilities.
• Creation of over 500 full-time jobs by the end of 2023, growing to 1,000 jobs by 2026.
• Facility designed to process up to one million units daily, boosting online shopping efficiency.

Negative

• None.

Gap Inc. (NYSE: GPS), today announced plans to open a new state-of-the-art Customer Experience Center in Longview, Texas. By delivering inventory faster and more efficiently to customers across the country, the $140M investment will help Gap Inc. meet the rising customer demand for online shopping and reach its future plans for digital growth. Gap Inc. anticipates the new campus will create more than 500 full-time jobs in Longview by the end of 2023 and will grow to more than 1,000 full-time jobs in the city over the next five years. Additionally, the company expects to create more than 1,000 part-time and seasonal jobs by 2026.

Gap Inc. Announces Plans to Build New Distribution Center in Longview, TX. Shown: Gap Inc. Distribution Center in Fresno, CA. (Photo: Business Wire)

The new campus will become Gap Inc.’s latest facility to feature industry-leading technology that has been tested and optimized in other campuses across the Gap Inc. network. Upon completion, the new facility will be able to process up to one million units per day.

“As we look to deliver on our three-year strategy and double our online business, we needed to expand our fulfillment network to provide a great experience for our customers today and ensure we have the ability to grow in the future,” said Shawn Curran, Chief Operating Officer, Gap Inc. “We are thrilled to join the Longview community and look forward to developing a facility that will provide employment opportunities and job training to work alongside cutting-edge technology.”

Prior to the pandemic, Gap Inc. set out on a journey to transform its fulfillment network by piloting and implementing some of the world’s most advanced fulfillment technology and robotics. The result has transformed our traditional distribution centers into highly automated, cross-channel Customer Experience Centers, intended to serve customers wherever they are shopping. While the Longview facility will initially serve Old Navy’s growing online business, many of the company’s Customer Experience Centers have the capability to seamlessly serve both online and retail orders in one facility.

The new facility in Longview is expected to total approximately 850,000 square feet. Construction will begin in April 2021 with plans to be fully operational by August 2022. This campus will supplement our six existing campuses in North America, including those in Fresno, CA; Phoenix, AZ; Groveport, OH; Gallatin, TN; Fishkill, NY; and Brampton, Ontario. While Gap Inc. had plans in place to open a new facility beforehand, as a result of changing customer needs during the pandemic the timeline has been accelerated to create more capacity for online growth.

“We are incredibly excited to welcome Gap Inc. to Longview,” said Mayor, Dr. Andy Mack. "This significant investment by Gap Inc. will provide a large number of jobs for East Texans and is a continued diversification of our economy. We believe Gap Inc. will play a tremendous role in supporting economic growth and opportunity in our city and we look forward to working together to deliver a lasting, positive impact on our community.”

For images of Gap Inc.’s existing Customer Experience Centers, click here.

About Gap Inc.

Gap Inc., a collection of purpose-led lifestyle brands, is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Janie and Jack brands. Fiscal year 2019 net sales were $16.4 billion. Gap Inc. products are available for purchase worldwide through company-operated stores, franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.

Gap Foundation Donates $100K to Winter Storm Relief

To support communities impacted by the recent devastating winter storms, Gap Foundation has made a $100,000 commitment to the aid in the recovery of the hardest-hit states of Texas, Oklahoma and Louisiana. The Foundation team is working closely with community partners to determine where the need is the greatest and how funding can best support recovery efforts. For more information, please visit here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005093/en/

FAQ

What is Gap Inc.'s new investment in Texas for?

Gap Inc. is investing $140 million to open a new Customer Experience Center in Longview, Texas, enhancing its online shopping capabilities.

How many jobs will the Longview facility create?

The new facility is expected to create over 500 full-time jobs by the end of 2023 and more than 1,000 by 2026.

When will construction of the Longview facility begin?

Construction will start in April 2021, with plans to be fully operational by August 2022.

What are the expected benefits of the new Customer Experience Center?

The center will process up to one million units per day, improving efficiency in fulfilling online orders.

How does this investment align with Gap Inc.'s digital growth strategy?

The investment supports Gap Inc.'s strategy to double its online business by expanding its fulfillment network.