Gap chief executive Glenn Murphy is to retire from his role and will hand over control of the clothing company to Art Peck, president of its growth, innovation and digital division early next year.
Murphy, who has held the role for seven years, will retire in February 2015, following a transitional period.
Among his various roles since joining the company 2005, Peck led the North American division for the Gap brand in 2011 and 2012 and previously served as head of the outlet business for Gap and Banana Republic.
He is currently responsible for creating the company’s omnichannel and digital strategies, and guiding the emerging Athleta, Intermix and Piperlime brands.
“We are pleased to have an internal leader with Art’s proven track record and management capabilities to chart the path for the company to further compete, win and grow,” said Bobby Martin, lead independent director for Gap’s board of directors.
“Art has created substantial value for the company over the past decade, and the Board is confident he will further increase long-term returns for our shareholders. The Murphy era at Gap Inc. will be long remembered for successful global expansion, strategic investments in key growth areas, and the consistent shareholder returns that our management team delivered.”
As part of the transition, Bob Fisher, who has a 35-year history with the company founded by his parents, will become non-executive chairman of the board, and Peck will join the board, effective 1 February.
A replacement for Peck's current role has not yet been announced.