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Gap CEO Says He’s ‘Drawing Line in Sand’ With Shift to Old Navy

  • Art Peck now has to prove he has a consistent growth engine
  • Old Navy has been cannibalizing customers from the Gap chain
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Why Gap Is Shifting Its Focus to Old Navy

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As Gap Inc. Chief Executive Officer Art Peck evaluated the sprawling chain’s more than 3,000 stores earlier this year, a painful conclusion stared back at him: Hundreds of them could never be saved.

Even after several previous rounds of store closings, the company’s Gap and Banana Republic locations were languishing. Same-store sales have fallen 13 of the last 14 quarters at its namesake chain, and they’ve tumbled the past 10 straight quarters at Banana Republic. The brands were tired, and something needed to be done.