Gap is betting Old Navy (GPS) and AI will help solidify its position in retail.
Old Navy, Gap’s largest brand, is partnering with Radar, a tech company that uses RFID, AI, and computer vision to track inventory in real time.
Horacio Barbeito, Old Navy’s CEO, said the tech will give store associates the “power” to better manage inventory and locate items around the store. Old Navy didn’t elaborate on how the partnership would affect in-store experiences or customers’ privacy, nor did it specify if AI would be used for anti-theft purposes; Quartz has reached out to the company for comment.
The San Francisco, Cali.-based retailer plans to roll out AI inventory monitoring across its stores nationwide over the next few years. The move is part of Gap’s ongoing efforts to strengthen Old Navy’s position in the market.
During Gap’s March 7 earnings call, CEO Richard Dickson highlighted Old Navy’s social media presence and influencer engagement as key drivers of its expanding customer base. Dickson added that Old Navy maintained its spot as the leading speciality apparel retailer in the U.S. for the eighth consecutive quarter — a stat that excludes department stores.
“In the year ahead, Old Navy will focus on innovation in key categories, with clear pricing, big storytelling ideas, and better in-store navigation,” Dickson said, according to a FactSet (FDS-0.03%) transcript.
The rise of in-store AI is also hitting other sectors, particularly fast food. Earlier this month, chipmaker Taco Bell announced a partnership with chipmaker Nvidia to integrate AI into its global restaurant operations. Other chains such as McDonald’s, Chick-fil-A, and Wendy’s say they are also using AI to manage product manufacturing and in-store operations. Retailers including Costco and Dollar Tree (DLTR+3.14%) are also using AI to attempt to track customer engagement.
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