Gap’s Sales Slip, Reshuffles Management
All-American brand GAP Inc saw its sales falling below its expectations. The San Francisco-based apparel retailer said total sales for October fell 9%, to $1 billion compared to $1.1 billion in October 2000. Sales at stores open at least a year plunged 17%, with steep declines at each of its three brands: Gap, Old Navy and Banana Republic.
Gap also said that its sales for the quarter fell 2% to $3.3 billion, and same-store sales fell 17%. Longtime chief executive officer Glenn Murphy announced that he would be stepping down from the helm of the group in February with Incoming CEO Art Peck, who will take over for Murphy on February 1.
As he prepares to step into his new role Mr Peck has unveiled a reshufling of management for stemming the group’s sales declines. From December Gap Inc will be led by Jeff Kirwan, previously Gap Inc’s president for Greater China. Banana Republic will see Andi Owen take to the helm, currently the leader of Gap’s Outlet division.
Gap is best known for its casual denim and khaki pants and has been expanding into emerging markets in the face of fierce competition from fashion rivals such as Uniqlo and Zara.
