Gap converting DCs for direct and retail fulfilment

Gap is reconfiguring its logistics so distribution centres that previously only transported items to stores can also fulfil orders from online shoppers. In a call with stock analysts last Friday (23 February), Gap’s CEO Art Peck said the retailer has “the luxury of having large retail distribution centers that are not fully utilized”; and Gap is therefore “doing the work to convert the retail DCs to be able to ship both direct and retail fulfillment out of one pool of inventory and one DC”.

The work to convert distribution centres that previously only served stores to also handle online orders is scheduled to be completed in early 2018.

Peck’s comments can be seen in full on the stock analysts call transcript from Seeking Alpha.