Gap Inc. has acquired the New York- and Tel Aviv-based start-up Context-Based 4 Casting, Ltd. (CB4) that uses AI and machine learning tools for retail operations, to increase sales and to improve the customer experience through predictive analytics and demand sensing.
“We believe artificial intelligence and machine learning will shape the future of our industry. Gap, Inc. has experience working with CB4’s world-class data scientists, so we understand the impact and the wide applications their science can have across sales, inventory and consumer insights, as well as its potential to unlock value and enhance the customer experience,” said Sally Gilligan, Chief Growth Transformation Officer and head of Gap, Inc.’s Strategic Growth Office. The Strategic Growth Office brokered the deal.
CB4’s technology makes recommendations that support new sales and customer satisfaction. Funded by investors including Sequoia Capital, CB4’s technology is being used by Levi’s, Urban Outfitters, Lidl, and Kum & Go.
As part of the acquisition, CB4’s team will join Gap, Inc. as full-time employees. CB4 CEO Yoni Benshaul commented, “CB4’s AI helps lift sales and enhance customer experiences. As we join Gap, Inc., I’m excited to see how our team can drive even broader and deeper impact at the company’s global scale.”
Since moving to the cloud in October 2020, the retailer has increased investments in technology for growth and innovation to support its brand portfolio. Earlier this year, its Strategic Growth Office led Gap, Inc.’s acquisition of Drapr, an e-commerce startup that powers 3D-fit technology and virtual fitting rooms to reduce online returns and also participated in the latest funding round for Obé fitness, a digital fitness platform that partners with Gap, Inc.’s Athleta brand to bring entertainment, pop culture and design to fitness.
Photo courtesy Reuters
