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Gap Inc. abruptly announced last night that Art Peck’s stint as CEO is over.
Peck leaves Gap after four years as CEO and 15 years with the company. Peck, who forfeited his seat on the Gap board, will be replaced in the interim by Robert Fisher, the board’s nonexecutive chairman and a member of Gap’s founding family.
Oh, by the way...Gap slid some unfortunate sales figures in with the news. Its comparable sales declined 7% annually in fiscal Q3, while soon-to-be-spun-off brand Old Navy’s sales declined 4%. Also declining: Gap’s stock price, which fell 7% after hours Thursday.
Other outlets called Peck’s departure a shock, but it shouldn’t have been. He wasn’t exactly presiding over a premium denim dynasty in its golden age.
- Gap shares have lost more than half their value under Peck.
- 230 Gap stores are slated to close in the next two years due to weak sales.
My takeaway: Peck was charged with revitalizing Gap’s online presence and overseeing Old Navy’s spinoff. That he’s headed out the door before those goals are accomplished suggests he was falling short of expectations.