Peck, who currently serves as president of growth, innovation and digital operations, will take the job on Feb. 1, the San Francisco-based company said today in a statement. As part of the transition, Bob Fisher, the son of Gap’s founders, will become nonexecutive chairman of the board. Murphy had served as CEO and chairman more for more than seven years.
Peck, 59, will work to increase the company’s digital sales at a time when mall traffic shrinks and shoppers are increasingly going online for deals. Gap’s total sales at stores open at least a year -- including online purchases -- were little changed in September compared with the same period a year earlier, the company said in a separate statement today. Analysts had predicted a 1.2 percent gain.
“This is a planned and orderly process, and there’s a lot of continuity that’s going to come out of it,” Peck said in an interview. “We feel we have a very well articulated strategy thats delivering a lot of value and we’re a long way from being complete on. I’m committed to following that through.”
Gap, the largest clothing-focused retailer in the U.S., owns the Old Navy and Banana Republic chains, in addition to its namesake brand. Murphy, 52, joined the company in 2007 from Canada’s Shoppers Drug Mart Corp. and oversaw the acquisition of athletic apparel brand Athleta in 2008 and luxury brand Intermix in 2012. He helped the company recover from a years-long sales slump that was exacerbated by the financial crisis and recession. The shares have more than doubled since Murphy took over as CEO.
“We’ve set this goal to be the No. 1 apparel company in the world, and the way to do that is to have a very strong portfolio of brands,” Murphy said in an interview. “I really do believe the best years are ahead of Gap with the foundations of the business in place.”
Murphy said he has no plans for where he’ll go after the transition.
Peck joined the company in 2005, and has held several brand, strategy and operational roles and also currently guides the companies smallest Athleta, Intermix and Piperlime.
By Lindsey Rupp; editors: Nick Turner, Niamh Ring.