These two businesses, each less than a quarter of the size in 2000 of Gap, were now setting the pace in the world mass trend market, and Gap appeared to be falling ever farther behind. A sustained rally remained elusive, while several temporary profit boosts appeared to herald a restoration.
Gap's CEO since 1983, Mickey Drexler, who had been responsible for Gap's rise to global prominence, was fired in 2002 after a couple of years of double digit, same-store sales declines and a 75% fall in the stock price. His successor, Paul Pressler, seemed to have engineered a remarkable recovery, but was fired in profits after disappointing sales and another slump in 2007. His alternative was Glenn Murphy, who was fresh from a successful reversion at a Canadian drug-store chain, guaranteed tighter price controls, lower administrative costs, as well as a leaner, more competitive Gap, but sales continued to fall over his tenure. In 2012, 8% had been lifted by sales, same-store sales were strongly positive for all of Gap's domestic sub-brands, and the company's share price had lifted almost 50% from the preceding years. Subsequent to 12 years of dampening performance, had Glenn Murphy conclusively found the solutions to Gap's issues?"
PUBLICATION DATE: May 29, 2013 PRODUCT #: 715C07-HCB-CHI
This is just an excerpt. This case is about STRATEGY & EXECUTION
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