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Gap investing $140 million for Texas warehouse as online sales surge

Photo by: Gap/Facebook

Gap is one of the few thriving businesses in the fashion industry today. Many companies have already closed down or reduced their shop outlets due to the negative effects of the COVID-19 pandemic, but the American clothing and accessories retailer managed to survive and, in fact building a new warehouse.

Investment for a new depot

CNBC reported that Gap received many orders even in the midst of the pandemic in recent months. While many stores have closed down, Gap also shuttered some of its shop outlets in malls, but it managed to remain strong as it quickly shifted to online selling.

The trend today is online shopping as people could not go out as they please anymore. As a result of lockdowns, most people are stuck in their homes and the only way to buy things is through the web.

Gap understands this so it focused on online selling and now it is announcing a $140 million investment to build a warehouse that will rise in Longview, Texas. It was said that with the new building, the retailer will be able to process around one million order packages each day.

The decision to construct the Texas depot was also part of Gap’s plan to procure half of its sales from online selling by 2023. This is the plan since people are shifting to electronic and online transactions.

The Texas warehouse and job offerings

Once built, Gap is expecting its sales to double in the next two years. Once completed, the Texas warehouse will feature an 850,000-square-foot space that will allow for the processing of more orders via the e-commerce platform.

The company is also happy because it will be able to offer new jobs for the Texas residents. It was reported that the Gap warehouse will create over 500 full-time jobs by the end of 2023. In the succeeding five years, more than 1,000 jobs will be available.

“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,” Gap’s COO chief Shawn Curran, said in a press release. “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.”

Finally, Gap stated that the Texas warehouse will be fully operational by August of next year.

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