Gap CEO Glen Murphy to retire; digital head Art Peck to take reins

San Francisco -- Gap Inc. announced that its chairman and CEO, Glen Murphy, will step down, effective February 1, 2015. He will be succeeded by Art Peck, the president of the company’s growth, innovation and digital division.



Murphy and Peck have worked side-by-side for the better part of a decade as Gap dramatically improved its financial performance while expanding globally, the company said.



In making the announcement, Gap said Murphy, who joined the retail giant in 2007, made the personal decision to retire from the company at the end of the fiscal year, allowing for a smooth and seamless leadership transition. Under his leadership, Gap acquired new brands and globalized its business by expanding store locations from about 10 to 50 countries, including China. He also made the company an early adopter in integrating the physical and digital shopping experiences.



Gap said the incoming CEO, Peck, has delivered significant results for the company in a variety of brand, strategy and operational roles since he came on board in 2005. He is currently responsible for creating the company’s omnichannel and digital strategies, and guiding its emerging Athleta, Intermix and Piperlime brands.



“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,” Murphy said.



Peck led the North American division for Gap brand in 2011 and 2012, overseeing a product resurgence that successfully improved its business results. Previously, as head of the outlet business for Gap and Banana Republic, he grew earnings and sales for the divisions and opened outlet stores globally. In his first few years with the company, he led the development of the global strategy that continues to guide the company, and established and launched its first franchise markets.



“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. “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.”



Prior to joining Gap Inc., he spent more than 20 years at The Boston Consulting Group where he rose to senior partner, with a focus on consumer technology, media and entertainment, consumer products, and retail.



As part of the transition, Bob Fisher, who has a 35-year history with the company founded by his parents, will become non-executive chairman of the Board. Peck will join the board, effective February 1, 2015.