Gap Inc. CEO Glenn Murphy to Hand Reins to Global Head of Digital

FacebookTwitterLinkedIn

In a surprise announcement, Gap Inc. revealed that its CEO, Canadian Glenn Murphy, would be stepping down on Feb. 1 following a seven-year run at the top.

His replacement? Art Peck, the company’s global head of growth, innovation and digital since 2012, who joined the company seven years earlier from Boston Consulting Group.

The news came as Gap Inc. reported flat sales for September: Gap Global -3%; Banana Republic Global +2%; Old Navy Global +1%. The company’s stock fell 8.1% in after-hours trading on the news.

As the Wall Street Journal noted, Murphy had “reversed a long-running sales slump but more recently has struggled to reinvigorate the company’s namesake brand.” He joined Gap Inc. in 2007 from Canadian pharmacy chain Shoppers Drug Mart, where he was CEO.[more]

According to the press release announcing the change in leadership,

Following seven successful years in his role, Murphy made the personal decision to retire from the company at the end of the fiscal year, allowing for a smooth and seamless leadership transition. Since the end of 2007, Gap Inc. has delivered exceptional financial results, with an impressive six-year compounded annual growth rate (CAGR) on earnings per share of 17 percent and a total shareholder return of more than 160 percent.

Under Murphy’s stewardship, the company acquired new brands and globalized its business by expanding store locations from about 10 to 50 countries, including China.  “Today, Gap Inc. is a formidable global fashion retailer with a strong foundation in place for long-term growth, therefore making this an appropriate inflection point for me to pass the baton to a leader who will take our portfolio of brands to even greater heights,” Murphy said. “With consumer expectations rapidly evolving, Art is the right leader at the right time to build on our success and ensure a compelling experience for our customers across both our physical and digital channels.”

As for Murphy’s replacement, who was named one of Fast Company‘s “100 Most Creative People in Business” last year, the company stated,

Peck has delivered significant results for Gap Inc. in a variety of brand, strategy and operational roles since joining the company in 2005. He is currently responsible for creating the company’s omni-channel and digital strategies, and guiding the emerging Athleta, Intermix and Piperlime brands. The company’s commitment to a robust succession process enabled the Board to evaluate, over time, many impressive internal and external candidates. The Board unanimously agreed that Peck is the ideal leader for the role.

“We are pleased to have an internal leader with Art’s proven track record and management capabilities to chart the path for the company to further compete, win and grow,” said Bobby Martin, lead independent director for Gap Inc.’s Board of Directors. “Art has created substantial value for the company over the past decade, and the Board is confident he will further increase long-term returns for our shareholders. The Murphy era at Gap Inc. will be long remembered for successful global expansion, strategic investments in key growth areas, and the consistent shareholder returns that our management team delivered.”

Below, how Gap Inc. shared the news on Twitter:

FacebookTwitterLinkedIn