Gap Inc. Investing $140M In Texas Distribution Center

The new Gap Inc. distribution center will create more than 500 jobs in Longview, TX by 2023, and even more over the next five years.


https://businessfacilities.com/2021/02/gap-inc-investing-140m-in-texas-distribution-center/
The new Gap Inc. distribution center will create more than 500 jobs in Longview, TX by 2023, and even more over the next five years.
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Gap Inc. Investing $140M In Texas Distribution Center

The new distribution center will create more than 500 jobs in Longview, TX by 2023, and even more over the next five years.

Gap Inc. Investing $140M In Texas Distribution Center

Gap Inc. plans to open a new state-of-the-art Customer Experience Center in the Longview North Business Park in Longview, TX. The company expects the new campus to 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, Gap Inc. expects to create more than 1,000 part-time and seasonal jobs by 2026.

“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, 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.”Longview Economic Development Corporation, Texas

By delivering inventory faster and more efficiently to customers across the country, the new Customer Experience Center will help Gap Inc. meet rising demand for online shopping and reach the company’s future plans for digital growth. The new campus will become Gap Inc.’s latest facility to feature industry-leading technology that has been tested and optimized in other campuses across the company’s network. Upon completion, the new facility will be able to process up to one million units per day.

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. It will supplement Gap’s six existing campuses in North America, including those in Fresno, CA; Phoenix, AZ; Groveport, OH; Gallatin, TN; Fishkill, NY; and Brampton, Ontario.

While the company had plans in place to open a new facility beforehand, as a result of changing customer needs during the COVID-19 pandemic the timeline has been accelerated to create more capacity for online growth.

“This significant investment by Gap Inc. will provide a large number of jobs for East Texans and is a continued diversification of our economy,” said Mayor Dr. Andy Mack. “I am thankful for the efforts of the Longview Economic Development Corporation to bring a project of this magnitude to Longview. We believe Gap Inc. will play a tremendous role in supporting economic growth and opportunity in our city, and we look forward to working together to deliver a lasting positive impact on our community.”

Longview Economic Development Corporation (LEDCO) agreed to a forgivable promissory note for $11.42 million for the purchase/sale of 142 acres in the North Longview Business Park, based on completion of the investment and employment goals over five years, according to the Longview News-Journal. LEDCO will also pay to relocate certain water, sewer and gas lines that cross the property, at an estimated expense of $997,000.

In addition, the city of Longview and Gregg County each agreed to 25-year tax abatements as long as the company maintains employee and capital investment goals. They also agreed to reimburse Gap Inc. for up to 40% of local sales tax revenues associated with sales from the fulfillment center over the 25-year period.

“We are proud to welcome Gap Inc. to Longview, Texas,” said Natalie Lynch, LEDCO Board Chairman. “The success of this project is a testament to the strength of Longview’s business climate, and the partnerships between LEDCO, the City of Longview, Gregg County and Longview ISD. I am thrilled that this global leading company has chosen to invest here, and for the substantial impact it will make on our economy and East Texas.”

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