Gap Inc. has tapped Old Navy Chief Executive Sonia Syngal to be the company’s CEO, effective from 23 March.
The news comes after Art Peck, who stepped down from the position in November, was temporarily replaced by Robert Fisher, the son of Gap founders Doris and Donald Fisher.
Last February, Gap Inc. had announced plans to spin off its Old Navy brand which would have seen Syngal as the CEO.
Although Old Navy’s sales grew by US $ 1 billion and the e-commerce business is now valued at US $ 1.6 billion under her guidance, the business has had to face some setbacks owing to tough competition in the market from the likes of Target, T.J. Maxx and Walmart.
The company, which is the second largest clothing retailer second only to Nike, saw comparable sales slide by 3 per cent in the first three quarters of 2019.
The business contributes almost 55 per cent to Gap Inc.’s revenue, which also owns brands like The Gap, Banana Republic and Athleta.
“I’m committed to fully realising the potential of our portfolio and the advantage of our scale, with a focus on strengthening the love that our millions of customers have for our brands. To do that, we must better prioritise initiatives and capabilities that will improve execution and drive value creation,” Sonia commented, showing her dedication towards the new position.
In view of this change, Gap Inc.’s stocks rose 1 per cent in after-hours trading. The company also announced that current board member Bobby Martin will take on the role of executive chairman, at the same time as Sonia.