Gap’s supply chain productivity gains fuel holiday confidence

Core Insights - Gap is entering a potentially challenging holiday season with confidence due to technology investments and effective inventory management [3] Technology Investments - The company is implementing robotic unloaders and advanced storage and retrieval systems in its fulfillment centers [4] - New consumer-facing AI tools and applications have been rolled out across design, planning, and operations, in partnership with Google Cloud [4] Inventory Management - Gap has focused on improving inventory management, tightening its unit purchasing approach for better flexibility and responsiveness to consumer demand [5] - The company reported nearly $2.5 billion in inventory as of November 1, which is a 5% increase year over year, attributed to higher costs from tariffs [6] Supply Chain Productivity - Supply chain productivity has increased by nearly 30% compared to previous years, driven by new AI and automation capabilities [8] - This enhancement allows the company to meet peak demand with greater speed, agility, and precision [8]