Gap will expand its operations in Groveport, Ohio, investing approximately $100 million into a new 420,000-square-foot warehouse. The investment will also create 600 new jobs; the retailer plans to begin hiring merchandise managers and filling management positions in Q1 and Q2 of 2020.
The new facility will be located next to an existing 950,000-square-foot warehouse, allowing Gap to significantly increase daily output to support its growing online business. The e-Commerce expansion stands in contrast to the brand’s brick-and-mortar presence, where comparable sales fell 7% in Q3 2018 and the retailer closed its flagship NYC store in January.
However, Gap is rising to the challenge — the company hired Neil Fiske, a 20-year retail veteran credited with several turnarounds, as President and CEO of the Gap brand in June 2018. Fiske previously held leadership positions at Billabong International, Eddie Bauer and Bath & Body Works.
Gap has been having success outside its flagship brand. The company opened 60 new Old Navy stores and remodeled 150 existing locations in 2018, and launched Hill City, a men’s counterpart to the Athleta women’s athleticwear brand. Even though Gap’s Q3 2018 sales were disappointing, sales at Old Navy stores grew by 4% and at Banana Republic stores by 2%.