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The Wall Street Publication > Blog > Lifestyle > Hole pours $58M into robotics and automation at its largest international distribution facility in Tennessee
Lifestyle

Hole pours $58M into robotics and automation at its largest international distribution facility in Tennessee

Editorial Board Published June 18, 2025
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Hole pours M into robotics and automation at its largest international distribution facility in Tennessee
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Hole is investing $58 million into robotics and automation at its largest international distribution facility in Tennessee.

Hole Inc. is investing tens of thousands and thousands of {dollars} to spice up operations at its Tennessee distribution middle, underscoring the corporate’s concentrate on strengthening home operations below CEO Richard Dickson’s management.

Hole Inc.’s $58 million funding in its Gallatin distribution middle, positioned on a 2.3-million-square-foot campus simply outdoors Nashville, will create 100 new jobs to assist the retailer’s rising use of robotics, automation and different infrastructure upgrades. Since its founding, the corporate has steadily expanded its presence in Tennessee, investing greater than $150 million on the distrubution web site and creating over 1,600 full- and part-time jobs within the area. So far, Hole is the biggest personal employer in Sumner County.

“This investment is a true testament to Tennessee’s business-friendly climate and pro-growth policies,” Sen. Invoice Hagerty, R-Tenn, stated in an announcement, noting how Hole’s funding will “build upon the great impact it’s already had on Tennessee, help create more jobs for hardworking families, and bolster our economy for years to come.”

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The Gallatin facility, the biggest in Hole Inc.’s international distribution community, leverages robotics developed by Boston Dynamics to assist retail and e-commerce achievement for Hole Inc.’s manufacturers – Athleta, Banana Republic, Outdated Navy and Hole. The corporate stated the ability additionally serves as a testing web site for brand spanking new logistics instruments and know-how. 

A person driving a Boston Dynamics robotic in Hole’s Tennessee distribution middle.  (Boston Dynamics/Hole Inc.)

“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,” stated Kevin Kuntz, Hole Inc. senior vp of logistics. “Gallatin is a vital part of our distribution network and we’re honored to further strengthen our commitment.”

In 2023, Dickson, a former Mattel government, was tapped to show round Hole’s international attire retail portfolio after the corporate endured years of declining gross sales. 

Previous to his time at Hole, the corporate carried out varied actions “simplify and optimize its operating model and structure,” together with reducing a whole lot of roles, lowering administration layers and making a extra constant organizational construction throughout its manufacturers. It additionally had a string of CEO modifications.

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However Dickson has a recreation plan to reinvigorate the corporate’s manufacturers, which features a main concentrate on investing within the U.S. 

“With an American workforce of over 65,000, investing in the U.S. is an important priority for our business,” Dickson stated through the firm’s first-quarter earnings name in Might.

Boston Dynamics robots working in Hole’s Tennessee distribution middle.  (Boston Dynamics/Hole Inc.)

Dickson additionally described how the corporate was planning on doubling its vendor sourcing of American-grown cotton in 2026 with about 90% of its gross sales within the quarter within the U.S. The corporate did not specify that its objectives to spend money on the U.S. have been associated to the Trump administration’s push to carry manufacturing again to the U.S. 

Dickson stated it has been diversifying its sourcing footprint for a number of years, which has put it in a greater place to “handle complex headwinds” akin to tariffs. 

Dickson warned in its Might earnings name that the corporate might face a $100 million to $150 million to its enterprise if President Donald Trump’s tariffs stay in impact, inflicting shares to fall. 

Nonetheless, “we have a stronger financial foundation and we are operating with greater discipline, growing brand momentum, and improved platform capabilities,” Dickson informed analysts. “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.”

Richard Dickson on the 2024 CFDA Vogue Awards held on the American Museum of Pure Historical past on October 28, 2024 in New York, New York. (Picture by John Nacion/Selection through Getty Photographs) (John Nacion/Selection through Getty Photographs / Getty Photographs)

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Regardless of the unsure setting, Hole Inc. reported constructive same-store gross sales for the fifth consecutive quarter, which was the three-month interval ending in Might. It additionally gained market share for the ninth consecutive quarter.

“We are lapping the early stages of our transformation, and our two largest brands, Gap and Old Navy, are winning in the marketplace and demonstrating the potential of our brand reinvigoration playbook,” Dickson stated, including that Outdated Navy and Hole are seeing development throughout all revenue teams.

TAGGED:58MautomationDistributionfacilitygapGlobalLargestpoursRoboticsTennessee
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