Executive shakeup at GAP Inc. amid declining sales

American retail group GAP Inc with portfolio including GAP, Banana Republic and Athleta has announced exits of senior executives amidst declining sales. For understanding, the company’s net sales declined 6% compared to last year to $15.6 billion. Store and online sales declined 6% and 7% respective, compared to last year.

Regarding executive shakeup the Group’s Chief Growth Officer Asheesh Saksena and Mary Beth Laughton, President and CEO of Athleta have exited. While the Group’s Chief People Officer Sheila Peters will leave at the end of the year.

“The Board is getting close to choosing the next CEO for Gap Inc [after the exit of Sonia Syngal in 2022]. As a result of the work, we have underway to build a stronger foundation and restore the company’s creative muscle, we are optimistic that this will provide our new leader with a quicker ramp in driving consistent, profitable growth over the long term,” said Bob Martin, Gap Inc. Executive Chairman and Interim CEO.

“To enter fiscal 2023 in a more competitive position we took quick and effective action to clear excess inventory, improve assortment balance, particularly at Old Navy, and to meaningfully optimize our cost structure, resulting in $550 million in annualized savings identified to date,” he added.

Looking ahead, the company anticipates that fiscal 2023 net sales could decrease in the low to mid-single digit range compared to last year’s net sales of $15.6 billion, while capital expenditures will be between $500-and-$550 million indicating lower technology project investments and fewer store openings.