Struggling clothier Gap (NYSE: GPS) has completed its search for a new CEO. The result? Glenn Murphy, the former CEO of Shoppers Drug Mart, the leading drugstore chain north of the border will take the reins and try to pull Gap out of its malaise.
And what a malaise it has been. Shares of Gap been stagnant for years as the company struggles to reinvent itself to compete with cooler stores like Abercrombie (NYSE: ANF). The stores have a flat look, and there's really nothing too exciting about the company, and there hasn't been for years. Earlier this year, Gap began pushing white t-shirts as a way out of the slump. I'm not kidding.
Murphy seems like an interesting choice. He lacks an extensive background in fashion, but that's what they have designers for. He has an excellent background in branding. According to the press release announcing his hiring:
During his more than 20 years of experience in retail, Mr. Murphy successfully reinvigorated retail brands in the areas of food, health and beauty, and books. Most recently, at Shoppers Drug Mart, he differentiated the brand with new products and better service, and grew the company's market capitalization from about CAD $3 billion to over CAD $10 billion following its public offering...
That sounds like exactly what Gap could use right now, and investors seem pleased: The stock traded up in the after-hours.
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