Gap Enhances Retail Operations With Radar Partnership for Old Navy

The Gap, Inc. GAP is advancing its digital transformation by partnering with American technology company Radar to enhance inventory management at Old Navy, its largest brand. This collaboration integrates RFID technology, providing store associates with real-time, in-store inventory visibility to improve product availability and customer service.
 
Through a multi-year, phased rollout, Radar’s real-time inventory tracking technology will be implemented across more than 1,200 Old Navy stores nationwide. This initiative aims to enhance inventory accuracy and streamline store operations by equipping associates with real-time product location data.

GAP to Optimize Retail Efficiency Through Smart Technology

Radar’s RFID and AI-powered platform utilizes overhead scanners that continuously track garments embedded with RFID chips, enabling employees to quickly locate products anywhere in the store, from the sales floor to the backroom. This enhanced visibility allows for faster product replenishment, improved in-store customer service and more efficient fulfillment of omnichannel orders, including in-store pickup.

Gap’s management views this partnership as a strategic initiative to integrate advanced technology into retail operations. The implementation of always-on RFID technology is expected to create connected store environments, optimize inventory management and provide real-time insights for business innovation.

On the other side, the management of Radar emphasized the impact of advanced inventory tracking on retail operations. They highlighted that providing store teams with real-time inventory and product insights will enable them to manage physical stores with the same precision as e-commerce.

With a strong focus on innovation in 2025, Gap aims to drive sustainable growth through strategic technology investments. By leveraging always-on RFID technology, the company seeks to empower store teams, enhance operational efficiency, and support product development and innovation.

Additionally, this initiative aligns with Old Navy’s broader digital transformation efforts, which include enhancing its omnichannel capabilities and improving customer shopping experiences. By investing in technology-driven solutions, the brand aims to strengthen its market position, increase sales and drive long-term operational efficiencies.

Here's How the Deal Will Aid Gap’s Old Navy

Old Navy, a subsidiary of Gap, is one of the largest apparel retailers in North America, known for offering affordable, stylish and family-friendly fashion. In its recent earnings report, Old Navy saw a 3% increase in comparable sales, driven by strong performances in categories like activewear and denim. This marks eight consecutive quarters of market share growth, solidifying Old Navy’s position as the number-one specialty apparel brand in the United States.

The RFID technology will not only enhance inventory tracking but will also help stores reduce stock shortages, prevent losses and restock shelves faster — problems that often lead to lost sales. While RFID has been used in retail before, the combination of AI and computer vision makes this system more advanced and effective.

A phased rollout allows Old Navy to fine-tune operations before expanding fully. The technology also provides valuable data insights, helping stores optimize product placement based on real customer behavior, much like e-commerce.

However, success depends on how well store teams adopt the system and how smoothly it integrates with existing operations. While benefits like better inventory accuracy and labor efficiency are expected, measurable results typically take 18-24 months to appear. This investment is more about long-term operational improvement than immediate revenue growth.

Shares of this Zacks Rank #1 (Strong Buy) company have lost 1.4% in the past six months compared with the industry’s decline of 13.6%.

GAP Stock's Price Performnce

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Other Key Picks

We have highlighted three other top-ranked stocks, namely Urban Outfitters URBN, Stitch Fix, Inc. SFIX and Tapestry TPR.

Urban Outfitters, a fashion lifestyle specialty retailer, currently sports a Zacks Rank #1. URBN delivered an average earnings surprise of 28.4% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 6.6% from the year-ago figure.

Stitch Fix sells a range of apparel, shoes and accessories for women's, petite, maternity, men's, plus and kids through its website and mobile application in the United States. The company currently carries a Zacks Rank #2 (Buy). SFIX delivered an average earnings surprise of 48.9% in the trailing four quarters.

The Zacks Consensus Estimate for Stitch Fix’s current financial-year earnings indicates growth of 60.6% from the year-ago figure.

Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Tapestry’s current fiscal-year sales and EPS indicates growth of 3% and 14.5%, respectively, from the year-ago quarter’s reported figures. TPR delivered a trailing four-quarter earnings surprise of 11.9%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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