To strengthen its domestic operations, Gap Inc. is investing $58 million into robotics and automation at its largest global distribution facility in Gallatin, Tennessee. The initiative is part of a broader strategy by CEO Richard Dickson to reinvigorate the company’s brands and solidify its U.S. footprint.
The Gallatin campus, sprawling across 2.3 million square feet just outside Nashville, already stands as a cornerstone of Gap’s logistics network. This latest investment is set to create 100 new jobs, further bolstering the company’s presence in Sumner County, where it is the largest private employer with more than 1,600 full- and part-time workers.
The upgraded facility will deploy advanced robotics developed by Boston Dynamics to support fulfillment operations for Gap’s major brands. Old Navy, Gap, Banana Republic, and Athleta. It will also function as a testing ground for cutting-edge logistics and infrastructure technology.
“This $58 million project will further enhance our capabilities to meet the needs of our customers and support our team members with cutting-edge tools and infrastructure,” said Kevin Kuntz, the company’s senior vice president of logistics.
Senator Bill Hagerty of Tennessee applauded the move, calling it a testament to the state’s pro-business policies and a boost to the local economy.
Gap’s renewed focus on U.S. operations comes amid a broader strategic turnaround effort led by Dickson, who assumed the CEO role in 2023 following years of leadership changes and sluggish performance. A former executive at Mattel, Dickson has emphasized modernization, operational discipline, and reinvestment in domestic resources.
In addition to the automation push, Dickson announced plans to double the company’s sourcing of U.S.-grown cotton by 2026, noting that around 90% of its quarterly sales are now domestic. He highlighted the company’s resilience amid geopolitical challenges, such as tariffs, crediting its diversified sourcing strategy.
However, Dickson also acknowledged potential risks, warning that ongoing tariffs could cost the business up to $150 million. Despite such challenges, he remains optimistic, citing recent positive momentum in sales and brand performance.
For the fifth consecutive quarter, Gap Inc. reported positive same-store sales, with its two largest brands Gap and Old Navy gaining market share and demonstrating growth across various income groups.
“We are lapping the early stages of our transformation,” Dickson stated. “The first quarter was yet another proofpoint that our strategy is working, and I remain optimistic yet realistic about the opportunities ahead as we navigate a highly dynamic environment.”
