The Gap sacks Design Chief, Brand’s slow sales continue

Gap, Inc. (NYSE:GPS) announced Thursday that it had sacked its star designer, Patrick Robinson, acknowledging that its problems run deep. No successor was named.

Three months ago the retail chain, fired its top business executive overseeing its Gap Division, it blamed merchandising, how items are presented in stores, for the brand’s faltering sales, not design.

Gap Inc’s brands includes Old Navy and Banana Republic, has drawn criticism for focusing recently on International growth and its newer Piperlime and Athleta stores, rather than on problems at its flagship brand.

Mr. Robinson joined Gap in Y 2007. He had designed for Paco Rabanne, Perry Ellis, Giorgio Armani and Anne Klein, and was nominated for a Council of Fashion Designers of America award, the industry’s equivalent of an Oscar. Soon after joining Gap, he was giving styling advice on the pages of Glamour and Teen Vogue, and was covered like a celebrity by fashion blogs.

Beyond the industry buzz, Mr. Robinson had a tough job figuring out what Gap should sell. After defining American basics in the ’80s and ’90′s , the chain was having problems.

Competitors like Abercrombie & Fitch (NYSE:ANF) and J. Crew, and fast-fashion brands like H&M and ZARA offered sharper takes on trends.

Thursday, Gap Inc. reported Strong sales at stores open at least a year. Increases at its Banana Republic and Old Navy divisions drove the 8% increase over last year, analysts had expected a 0.8% decline. Same-store sales rose 2% at the Gap North America division.

Mr. Robinson is leaving as Gap overhauls its Gap North America division, and named a new Global chief marketing officer for the Gap brand.

The news releases announcing executive changes was direct.

“I’ve made the decision to make a change within our Gap Adult design team,” Pam Wallack, Chief of the Gap Global Creative Center said, “and while Gap seeks a successor, the Head of children’s design will oversee adult clothing.

Our leaders of the new Gap Global Creative Center are taking the necessary steps to compete and win around the World,” Glenn Murphy, the Chairman and CEO of Gap Inc., said.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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Posted by Shayne Heffernan on May 6th, 2011and filed underEquities, Latest News, Markets, USA.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site