Gap building new DC in Texas

Gap Inc. plans to open a new distribution centre in Longview, Texas.

The US$140M investment will help Gap Inc. meet the demands of increased online shopping and reach its plans for digital growth. Changing customer needs during the pandemic has accelerated the timeline for development of this facility, the company said.

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.

The company expects the new campus will create more than 500 full-time jobs in Longview by the end of 2023 and 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.

One million units a day

The new campus will be Gap Inc.’s latest facility to employ industry-leading technology that has been tested and optimized in other DCs 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 at 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.”

Omnichannel capability

The Longview facility will initially serve Old Navy’s growing online business. However, Gap says its automated technology will allow it to serve both online and retail orders in one facility.

This campus will supplement six existing campuses in North America, including those in Brampton, Ontario; Fresno, California; Phoenix, Arizona; Groveport, Ohio; Gallatin, Tennessee; and, Fishkill, New York.

Gap Inc. retails clothing, accessories, and personal care products under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Janie and Jack brands. Fiscal year 2019 net sales were $16.4 billion.