Gap Readies for Q4 With $100 Million Digital Fulfillment Investment

Gap Inc. is expanding its fulfillment capabilities as it preps for the holiday season.

The No. 35 retailer said its $100 million investment in fulfillment center expansions in Phoenix, AZ, and Gallatin, TN, are now complete.

The expansions at the 1.4-million-square-foot Gallatin facility and 400,000-square-foot Phoenix facility now enable online order fulfillment for more of the company's brands. The company also has plans for a new 850,000-square-foot Customer Experience Center in Longview, TX, to support the online business of its Old Navy brand, as well as plans to expand capabilities at its Fresno, CA and Fishkill, NY Customer Experience Centers next year.

“Our goal is to always deliver an exceptional experience for our customers, and scaling our operations in Gallatin and Phoenix is just one of the many ways we’re able to do that in a continuously evolving marketplace,” said Kevin Kuntz, senior VP, logistics at Gap Inc., in a statement. “By expanding our engineering capabilities and increasing automation, we’re delivering on our Power Plan 2023 growth strategy. We’re able to serve customers no matter where they shop, and we can work more efficiently than before — all while creating even more job opportunities and reallocating our workforce in new ways to develop new skills.”

The company has tied fulfillment with its loyalty program, Gap Inc. CEO Sonia Syngal said last year, assigning delivery speeds to loyalty status.  

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“That will also allow us to optimize the speed of delivery and fulfillment based on our best customers and manage fulfillment costs effectively while pleasing our most valuable lifetime value customers,” she noted.

This has helped increase both efficiency and drive down fulfillment costs, according to the company.

Gap Inc. streamlined the loyalty programs for the Gap, Old Navy, Banana Republic and Athleta brands earlier this year by folding them into a single system. Now consumers are able to accumulate and redeem rewards across all four brands.

Doing so in turn enables the company to better develop personalized experiences.

 “We know that our most loyal customers shop more and spend more with us, so our goal is to turn all our customers into lifelong loyalists with a more customer-centric rewards program,” a company spokesperson told RIS News.