Gap CEO’s Departure Ends Another Chapter In Retailer’s Difficult Ride

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Art Peck is stepping down as CEO of Gap Inc., marking another chapter in the once storied retailer’s difficult ride. Peck will also relinquish his seat as the company’s board of director, according to a statement.

Robert J. Fisher will replace Peck, effective immediately, serving as president and CEO on interim basis. Additionally, the board has appointed Bobby Martin, chair of its compensation and management development committee, as lead independent director.

“On behalf of the entire board, I want to thank Art for his many contributions to Gap Inc., spanning a nearly 15-year career with the company,” Fisher said in a statement. "Under Art’s tenure as CEO, we have made progress investing in capabilities that bode well for the future such as expanding the omni-channel customer experience and building our digital capabilities.”

Under Peck’s tenure, the company began the process of spinning of its Old Navy brand to create two publicly traded business sometime in 2020. No reason for Peck’s departure was given, but the announcement was made in conjunction with the release of third quarter comparable store sales, which were negative for all three of Gap’s banners:

·     Gap Global: negative 7% versus negative 7% last year

·     Banana Republic Global: negative 3% versus positive 2% last year

·     Old Navy Global: negative 4% versus positive 4% last year

Gap also cut its fiscal 2019 outlook. Peck has served as CEO since 2015.

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Art Peck is stepping down as CEO of Gap Inc., marking another chapter in the once storied retailer’s difficult ride. Peck will also relinquish his seat as the company’s board of director, according to a statement.

Robert J. Fisher will replace Peck, effective immediately, serving as president and CEO on interim basis. Additionally, the board has appointed Bobby Martin, chair of its compensation and management development committee, as lead independent director.

“On behalf of the entire board, I want to thank Art for his many contributions to Gap Inc., spanning a nearly 15-year career with the company,” Fisher said in a statement. "Under Art’s tenure as CEO, we have made progress investing in capabilities that bode well for the future such as expanding the omni-channel customer experience and building our digital capabilities.”

Under Peck’s tenure, the company began the process of spinning of its Old Navy brand to create two publicly traded business sometime in 2020. No reason for Peck’s departure was given, but the announcement was made in conjunction with the release of third quarter comparable store sales, which were negative for all three of Gap’s banners:

·     Gap Global: negative 7% versus negative 7% last year

·     Banana Republic Global: negative 3% versus positive 2% last year

·     Old Navy Global: negative 4% versus positive 4% last year

Gap also cut its fiscal 2019 outlook. Peck has served as CEO since 2015.

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I'm a retail geek, having covered consumer electronics and mass-market retail trends since 1995 for trade and consumer publications. Host of the High-Tech Retail Summit ...