Gap Inc. has announced that it would not sell its Old Navy apparels in China from early 2020 and would instead focus on its North America market to boost sales.
The American retail biggie has been struggling to effect a turnaround after a long period of turmoil but to no avail. The company announced that CEO Art Peck, who took on the role in 2015, will be stepping down.
The news caused the company’s stock to plummet 7 per cent to US $ 16.75.
The son of founders Donald and Doris Fisher, Robert J. Fisher, who serves as Gap’s non-executive chairman of board, will be taking over the position as interim CEO and President.
Gap Inc. also announced previously that global sales at its stores opened at least a year has slumped by 4 per cent.
By brand, Gap’s same-store sales fell by 7 per cent, while the figure was down 3 per cent at Banana Republic. At Old Navy, which had been the company’s juggernaut, same-store sales fell by 4 per cent.
