The US retail clothing chain, Gap, revealed on Wednesday that its chief executive officer is due to step downGlenn Murphy is set to resign as chief executive and chairman in February after holding the positions for more than seven years. He is due to be replaced by the current digital leader, Art Peck, who has been with company since 2005.
News related to the change in management came as the company reported weak same-store sales during September. The weak sales in the Gap brand is expected to damage third quarter margins in the company.
The firm, based in San Francisco, is also the owner of clothing retail chain stores Banana Republic and Old Navy.
Since Mr. Murphy accepted his role during July 2007, the market value of Gap has almost trebled, with its earnings doubling during that period.
However, the revenue growth of the company has not been adequate in the US market, and this has resulted in announcements that the company is considering expansion into emerging markets, such as China and India.
The company stated that it would open 40 stores in India and open an additional 30 in China to reach a total of 110 in the country.
Mr. Murphy stated that his decision to retire came after he was unable to commit his leadership of the company for the next several years. Art Peck, 58, was formerly the head of the North American operation of Gap during 2011 and 2012. The region is responsible for more than 75% of the revenue of the retail brand.