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08/22/2022

Gap opens high-tech e-commerce fulfillment center

Dan Berthiaume
Senior Editor, Technology
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Gap's newest distribution center is opening in Texas.

Gap Inc. is opening a new supply chain facility designed to support rapidly growing digital sales.

The specialty apparel retailer is opening ts newest Customer Experience Center in Longview, Texas. The 850,000-sq.-ft. distribution center, initially announced in February 2021, is outfitted with robotics systems and automation technology.

The new center will supplement Gap’s six existing distribution centers in North America, including those in Fresno, Calif.; Phoenix; Groveport, Ohio; Gallatin, Texas; Fishkill, N.Y; and Brampton, Ontario. 

With the addition of its new Longview campus, Gap’s fulfillment center network will have capacity to process an additional 1 million units per day, making for a total of more than 4 million units per day during peak season.  

 Earlier in summer 2022, the company also expanded operations at its customer experience center in Fishkill, N.Y., adding automated receiving, multi-level pick modules, enhanced returns processing capabilities, additional residual shuttles, and new automated storage retrieval systems. 

Gap says that it processes 1 billion units annually with a logistics workforce of over 9,000 associates that scales with seasonal demand. The retailer also claims an order accuracy rate of 99.8% and 99% on time ready to ship performance. 

By opening this center, Gap is building on other efforts to boost its presence in the supply chain space in the past year.

These include the acquisition of Context-Based 4 Casting Ltd. (CB4), a New York- and Tel Aviv-based retail artificial intelligence and machine learning platform. The start-up provides technology that is intended to increase sales and improve customer experience through predictive analytics and demand sensing.

The specialty apparel retailer also focused a $100 million-plus investment in its fulfillment centers in Phoenix, and Gallatin, Tenn. on increasing speed, flexibility and efficiency. The expansions at the company’s 1.4-million-sq.-ft. facility in Gallatin and its 400,000-sq.-ft. facility in Phoenix now enables online order fulfillment for more of its brands.

More recently, Gap introduced a new offering called GPS Platform Services by Gap Inc. The hosted service provides supply chain solutions that Gap says meet the needs of direct-to-consumer and business-to-business companies across the supply chain.

According to Gap, the platform offers logistics & fulfillment capacity and scale to retailers looking to grow their brand and expand their operations. Specific advertised logistics and fulfillment capabilities include automated e-commerce fulfillment​ and returns processing at Gap fulfillment centers.

“Peak season is now, and we know with peak season comes increased demand, increased hiring and increased opportunity to delight our customers” said Kevin Kuntz, head of supply chain at Gap Inc. “As we continue to deliver on our growth strategy, the launch of our Longview customer experience center is another opportunity to further unlock the power of technology and automation, evolve the way we work, diversify our business, and deliver an exceptional experience for customers.” 

[Read more: Meet the newest retail tech platform contender – Gap Inc.]

Gap Inc. offers clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republc, and Athleta brands.