Twitter
Facebook
Linked In
RSS
Login or Register
New to InternetRetailing?
Register Now
Internet Retailing
You are in: > Home > Themes

This is your 1 complimentary article for this month

Become a member for unlimited and immediate access.


Register
Already a member? Log in here

Gap looks for new chief executive as global sales fall

Linked InTwitterFacebookeCard
Sharelines

Gap looks for new chief executive as global sales fall

Gap is looking for a new chief executive after announcing that Art Peck was to step down following a brief transition.

 

Peck had led the fashion retailer as it grappled to adapt to digital and omnichannel retailing. But his departure after 15 years at Gap came as the retailer, whose UK presence is ranked Top250 in IRUK Top500 research, said that global sales continued to decline across its key brands.

 

Third-quarter sales at Gap were down by 7% for the quarter to November 2, as they had also been last year. Sales for the same period at Banana Republic were 3% down; a year ago they were 2% up. And Old Navy sales were 4% down on last year, when they had risen by 4%.

 

“This was a challenging quarter, as macro impacts and slower traffic further pressured results that have bene hampered by product and operating challenges across key brands,” said Teri List-Stoll, executive vice president and chief financial officer at Gap. “We have tremendous confidence in our brands and the talented organisation that supports them and we are seeing progress in some key areas. However, there is more work to do to leverage the capabilities we have invested in, and deliver the profitable growth we know these brands are capable of delivering.”

 

Robert J Fisher, Gap’s non-executive chairman, will stand in as chief executive until a replacement is found for Peck. He is a member of the family that founded Gap and has previously served as interim president and chief executive. Fisher thanked Peck for his contribution and said: “Under Art’s tenure as CEO, we have made progress investing in capabilities that bode well for the future, such as expanding the omnichannel customer experience and building our digital capabilities.”

 

He added: “As the board evaluates potential successors, our focus will be on strong leadership candidates with operational excellence to drive greater efficiency, speed and profitability. In the meantime, we will continue to focus on leveraging the power of our brands and the talented teams that lead them to improve execution and better position the portfolio for growth.”

 

In March, Gap said that it would close a net 30 stores, while also splitting its business into two parts, of which one would be Old Navy and the other Gap, Banana Republic, Athleta, and its other brands. At the time, Gap also showed that it was holding 10% more unsold stock than it had been a year earlier. The latest update of continued sales decline suggests that excess stock may continue to be an issue in the business.

 

Image: Screenshot of Gap.co.uk/InternetRetailing Media

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.

The InternetRetailing Newsletter

A curated update containing news analysis, reports, podcasts and opinion - completely free and delivered three times weekly

Become a Member

Create your own public-facing profile
Gain access to all Top500 research
Personalise your experience on IR.net
Internet Retailing
We are the magazine, portal and research source for European ecommerce and multichannel retail, hosting the board-level conversation for retailers, pureplays and brands across all of our platforms. Join the conversation.

© InternetRetailing Media

Latest Tweet

Internet Retailing
Tamebay
eDelivery
Twitter
Facebook
Linked In
Youtube
RSS
RSS
Youtube
Google
Linked In
Facebook
Twitter