It's good to see his ability to take flagship products (Disneyland) and run them into the ground remains in tact. I may not be the right person to judge, since I have no retail experience either, but he was unpopular at Disney for cheapening the entire experience and now it seems he's unpopular at Gap, Inc. I wonder where a guy with such high profile status will land next? How do you know which initiatives to trust from a guy who seems to be so hit or miss?
LOS ANGELES (Reuters) – Gap Inc. Chief Executive Paul Pressler resigned from the retailer on Monday after more than two years of weak sales and a failed attempt to revive the struggling clothing brand. The move sent its flagging shares up 2.5 percent after hours. Investors and analysts said the largest apparel retailer in the world could sell itself to another company or unload some pieces. Non-executive chairman Robert Fisher, 52, the son of the company's founder, will serve as interim CEO. Earlier this month, the company, which popularized the T-shirt and khakis look, said its executive team and board would review brand strategies at its two largest divisions – Gap and family-oriented Old Navy – which have lost market share and foot traffic to rival retailers. San Francisco-based Gap also recently hired investment bank Goldman Sachs Group Inc., increasing speculation that the company could be for sale. Pressler, 50, was hired in late 2002 after 15 years at Walt Disney Co. He was charged with turning around a three-year string of mostly negative sales at established stores. Same-store sales at Gap turned positive in 2003, but were negative for six months of 2004. Since 2005, same-store sales have dropped in all but two months. Many retail watchers have questioned whether Pressler was the right person to lead the company since he lacked extensive retail and merchandising experience. Gap said Monday the board would prefer a new CEO with "deep retailing and merchandising experience ideally in apparel." During his tenure, Pressler reduced debt, improved inventory controls, closed underperforming stores and added technology to back up operations at its more than 3,000 worldwide stores. While Pressler oversaw a successful turnaround at Gap's upscale Banana Republic chain, he was criticized for a new online shoe Web site, Piperlime, and a chain of stores for women above 35 called Forth & Towne, as store traffic fell at Gap and Old Navy. Pressler, who will also leave the board, is eligible for up to $14 million in severance, assuming a stock price of $20 per share, Gap said.
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