Chief
resignsfrom Gap
It
was announced on Wednesday that the chairman and chief executive officer of the
clothing line Gap is stepping down in February. After seven years in high
rankings Art Peck is replacing
Glenn Murphy (resigning chairman and chief executive officer). Art
Peck has been in the retail business with Gap since 2005 and is currently the digital leader.
The firm decided to change the
management set up, in September due to weak same-store sales. Gap’s weak sales were expected to hurt
margins in the third quarter.
Since Murphy stepped up to power in Gap
it is said that the market value for their company has tripled and its income
has increased by more than double. But this was not enough reason for Murphy to
stay. He had told analysts that he had
to retire from his position because “I can not commit to lead the company for
the next several years.”
Art Peck (who is currently 58 years
old) was the head of Gap's North America operations in 2011 and 2012. The region
accounts for more than three-quarters of the retailer's revenue.
