New CEO for Gap on the left, image of Gap storefront in the middle, and new CEO for Athleta on the right
Photo: Gap Inc.

Gap is revamping its senior leadership with timely appointments to the president and CEO roles at both Gap and Athleta slated for August. Gap’s new leader will be Richard Dickson, who is credited with the reinvigoration of the Barbie brand that led to her current pop culture renaissance in his role as president and COO of Mattel. Chris Blakeslee, who will become president and CEO of Athleta, helped mold the fast-growing Alo Yoga into a billion-dollar brand during his tenure as president — which is exactly the kind of momentum Athleta needs to regain its own luster.

The appointments are the result of an extended search period. Former Gap president and CEO Sonia Syngal stepped down in July 2022, and former Athleta president and CEO Mary Beth Laughton departed in March 2023. Both executives left in the midst of a series of weak quarters at the company, which culminated in the announcement of 1,800 layoffs in April 2023.

“Being CEO of Gap is not for the faint of heart.”

Neil Saunders

Dickson will join the company just months after Mattel and Gap launched an apparel collaboration that included a Gap x Barbie collection. His role overseeing merchandising Mattel means this partnership may have given him a head start in understanding Gap’s needs.

Additionally, Dickson’s outsider perspective and relevant product experience could be valuable to Gap, and the current Barbie craze is proof that he understands how to rejuvenate a faded brand, according to the managing director at GlobalData Retail Neil Saunders, who is a member of the RetailWire BrainTrust. However, it remains to be seen whether Dickson will be granted the necessary autonomy to reverse the company’s fortunes.

“While this is a good appointment, we hope that Mr. Dickson is given the time and space to implement changes which are long overdue,” said Saunders. “As history has shown, Gap’s major investors can be resistant to adaptation, and exert too much control over the direction of the company. In our view, there is no point bringing in good people if you don’t allow them the scope to shake things up.”

Blakeslee will have his own challenges at Athleta. The activewear brand was once the shining star of Gap’s portfolio, but it is now showing signs of struggle in the increasingly competitive activewear market: The brand posted an 11% year-over-year sales drop in Q1 2023 compared to a 4% sales increase in Q1 2022. Add in challenges at the retailer’s other banners, and Gap’s newest hires have their work cut out for them.

“The core Gap brand is in desperate need of reinvention, the deep-seated problems at Old Navy need to be addressed, the faltering recovery at Banana Republic needs to be put back on track, and the now fading momentum at Athleta needs to be reinvigorated,” said Saunders. “In short, being CEO of Gap is not for the faint of heart.”

BrainTrust

“With effort and application it can be turned around. That turnaround needs to start with redefining the brand essence of each division and improving product and merchandising.”

Neil Saunders

Managing Director, GlobalData


“We all applaud the new energy at Gap, but the real issue is the merchandise, which is stale and unimaginative.”

Cathy Hotka

Principal, Cathy Hotka & Associates


“As Neil notes, they are up against an embedded corporate culture. Cultural turnaround is a bigger challenge than a brand turnaround.”

Gene Detroyer

Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.

Discussion Questions

While Dickson and Blakeslee have proven track records, will two executives be enough to turn around the fortunes of a company the size of Gap?

What other changes do you think Gap needs to make in order to bolster its operations and return to significant sales growth?

Poll

Will the appointments of Dickson and Blakeslee lead to a brighter future for Gap?

View Results

Loading ... Loading …

Leave a Reply

15 responses to “Can a Leadership Shakeup Breathe New Life Into Gap?”

  1. Neil Saunders Avatar
    Neil Saunders

    Gap Inc. is a company of multiple brands, all of which have issues. Some fascia, such as Gap, have been in decline for a very long time. It is also a company that has been traditionally resistant to change and where there is often interference from certain investors which makes a CEO’s life extremely difficult. All of this makes a turnaround challenging. However, with effort and application it can, indeed, be turned around. That turnaround needs to start with redefining the brand essence of each division and improving product and merchandising. I think both Richard Dickson and Chris Blakeslee have excellent skills and are capable of doing this. My biggest concern is the culture at Gap which I hope is becoming more amenable to the need for change.

  2. Paula Rosenblum Avatar
    Paula Rosenblum

    Gap has been pretty dysfunctional for a very long time. The product mix never recovered from the end of logo-driven clothes, and anything you can get there, you can get elsewhere, cheaper.

    Of all the divisions, Athleta and Old Navy have the best chances of surviving. I just don’t see anything at Gap (ever) that I couldn’t get cheaper elsewhere. I think a re-invention is in order.

  3. Cathy Hotka Avatar
    Cathy Hotka

    We all applaud the new energy at Gap, but the real issue is the merchandise, which is stale and unimaginative. Gap might want to take a page out of Target’s playbook and hire guest designers for short stints, just to shake things up.

    1. Richard Hernandez Avatar
      Richard Hernandez

      This.
      I will say what I said when this topic has been discussed- Gap needs to figure out what they want to be when they grow up.
      Assortment , message, price strategy is all over the place.
      I think there needs to be a cohesive direction that is clear for the consumer to understand- maybe bold or in your in face.
      I hope these new leaders can create an nurture that message.

  4. Gene Detroyer Avatar
    Gene Detroyer

    Gap and its brethren have serious brand issues. What they represent in the consumer’s mind is not pretty. It is tough to change brand perceptions. The success stories are few.

    At this point, the real question is, “Can Dickson and Blakeslee get it done?” As Neil notes, they are up against an embedded corporate culture. Cultural turnaround is a bigger challenge than a brand turnaround.

    One of my favorite quotes…”Culture eats strategy for breakfast, lunch, and dinner.”

  5. Allison McCabe Avatar
    Allison McCabe

    Like turning the Queen Mary…the first step is setting a course to answer the “why”? Why does Gap exist and why should the customer care? Old Navy does everything that Gap ever did at a price. Athleta has a defined identity. Banana Republic is searching for one.
    If Barbie and Hot Wheels can become cool again, there is hope for the Gap. The employees need to believe that.

  6. Jeff Sward Avatar
    Jeff Sward

    The Gap division product content has been so risk averse for so long that it finally drifted into price promotion and discounting to drive the business. Now it has the incredibly difficult task of finding a way to differentiate both product and marketing and also extracting itself from the deeply promotional position it created for itself. And achieving differentiation in everyday wear is a tall order. At its’ peak, Gap appealed to a spectrum of customers ranging from teens to boomers. Teens to grandparents. Whole families. And it was with predictable product and brilliant marketing. It won’t be that simple this time around. Differentiation. Value. Managed scarcity. Brilliant marketing, both in-store and on-line. A tall order indeed! But I really like the track record that both executives are bringing to the game.

  7. Melissa Minkow Avatar
    Melissa Minkow

    These leaders are great, and people certainly matter, but they have to be making the right decisions for the brand. I’m cautiously optimistic, the issue is just that there are many variables for them to re-visit and update regarding this brand.

  8. Dick Seesel Avatar
    Dick Seesel

    Mr. Dickson certainly breathed life into a 64-year-old brand, although not without plenty of help from the PR machine supporting the Barbie movie. And Gap’s biggest problem is brand relevance (which goes hand in hand with better merchandising).

    It’s hard to see how one new leader can succeed where a string of prior CEO’s failed. Some of them had retail background (inside and outside of Gap), some of them had CPG backgrounds — but none of them was able to turn this ship around. The smart play may be to simply eliminate the Gap brand and consolidate resources behind Old Navy, even though it sounds like corporate heresy.

  9. Lee Peterson Avatar
    Lee Peterson

    This is actually kind of humorous — why not Steven Spielberg?? He’s pretty good. I’m waiting for the return of Mickey Drexler just so i can envision the groveling on the Fisher’s part. Gap needs drastic change: fewer stores, merch re-do, used / vintage gap stores / different real estate .. . ..they need to pull off the band aid and get to 2025, painful as it might be, they should move to next, take the hit and become New Gap asap

    1. Craig Sundstrom Avatar
      Craig Sundstrom

      Ah , yes, the Fisher’s: the one constant over years of lackluster performance (and one of whom is currently attracting a lot of attention , for all the wrong reasons). If, as seems to be the argument of many here, company culture is the problem, that might be a good place to start.

  10. David Fischer Avatar
    David Fischer

    Gap branded clothes are being sold at Sam’s Club. Most of their retail stores have closed, and the few left carry clothes that are essentially available elsewhere for less. Gap as a high fashion brand as it was in the 80s and 90s is done. Old Navy and Banana Republic still have a chance at a turnaround. Old Navy is the H&M and Pathmark challenger. Banana Republic may still have some cache as an upper mid-range brand but they may want to pull back on the rampant discounting such as selling at Costco and the proliferation of Factory Stores. Athleta is an opportunity as well but today lacks differentiation from Lululemon. The new team may turn things around but it will be the challenge of their careers.

  11. Brandon Rael Avatar
    Brandon Rael

    If Richard Dickson and his leadership team can spark a business transformation at Gap, it would be one of the most significant turnarounds in recent history. The challenges at the Gap are similar to the disruptions and downturns that formerly dominant retailers such as Sears, Bed Bath & Beyond, Toys R Us, and others experienced that led to their bankruptcies or their being a fragment of what they once were. Dickson and the team must instill a culture of change, transformation, courage, and a willingness to fail while taking calculated innovation risks.

    The Gap has had significant challenges in remaining relevant in a retail landscape and consumer base that has moved on to other more trendy and socially viral brands. As Dickson and his leadership team develop authentic ways to reignite the Gap brand, it is crucial to consider that Gap Inc. has numerous brands, each with its own customer segments, assortment, pricing, and promotional strategies.

    There will be a delicate balancing act for Gap and the associated brands of removing costs in a meaningful way, reinvesting in product assortments, improving store layouts, connecting the digital experience, and optimizing the supply chain. The overall quality and merchandising strategies have been off, and customers have moved on from the Gap. The first critical step of a monumental business transformation and turnaround plan for Dickson and the team is to reimagine the Gap mission statement, the brand’s purpose, its reason for existence, and how to resonate with GenZ and younger generations.

  12. Craig Sundstrom Avatar
    Craig Sundstrom

    GAP has its own “proven track record”, and it’s been one of decades of poor performance. Do I think two new faces , however impressive their CV’s might be, will suddenly change that? No. How about gradually, then? Will they last long enough for us to find out ?

  13. Carlos Arambula Avatar
    Carlos Arambula

    GAP has been struggling due to a lack of differentiation in marketing and an unclear product identity for several years now. This longstanding issue has made it difficult for GAP to maintain a distinct brand presence amid tough competition and shifting consumer behaviors during the pandemic.

    Competitors like Uniqlo have effectively filled the space that GAP once occupied with its utilitarian-style product offering. Consequently, GAP must act swiftly to redefine its brand, establish a strong connection with a specific consumer segment and occasion.

    The appointment of new leaders offers hope for positive change as they bring fresh perspectives and innovative approaches to GAP’s challenges. However, it’s important to understand that transforming the brand will be a gradual process, not an immediate fix. The primary focus initially should be on halting the decline in sales.

    In the long run, GAP needs to differentiate its products effectively, cater to specific consumer segments, and adapt to contemporary shopping behavior . While it may take years to refresh the brand’s image, prioritizing customer-centric strategies will be key to its success.

15 Comments
oldest
newest
Neil Saunders
Neil Saunders
13 days ago

Gap Inc. is a company of multiple brands, all of which have issues. Some fascia, such as Gap, have been in decline for a very long time. It is also a company that has been traditionally resistant to change and where there is often interference from certain investors which makes a CEO’s life extremely difficult. All of this makes a turnaround challenging. However, with effort and application it can, indeed, be turned around. That turnaround needs to start with redefining the brand essence of each division and improving product and merchandising. I think both Richard Dickson and Chris Blakeslee have excellent skills and are capable of doing this. My biggest concern is the culture at Gap which I hope is becoming more amenable to the need for change.

Paula Rosenblum
Paula Rosenblum
13 days ago

Gap has been pretty dysfunctional for a very long time. The product mix never recovered from the end of logo-driven clothes, and anything you can get there, you can get elsewhere, cheaper.

Of all the divisions, Athleta and Old Navy have the best chances of surviving. I just don’t see anything at Gap (ever) that I couldn’t get cheaper elsewhere. I think a re-invention is in order.

Cathy Hotka
Cathy Hotka
13 days ago

We all applaud the new energy at Gap, but the real issue is the merchandise, which is stale and unimaginative. Gap might want to take a page out of Target’s playbook and hire guest designers for short stints, just to shake things up.

Richard Hernandez
Richard Hernandez
  Cathy Hotka
13 days ago

This.
I will say what I said when this topic has been discussed- Gap needs to figure out what they want to be when they grow up.
Assortment , message, price strategy is all over the place.
I think there needs to be a cohesive direction that is clear for the consumer to understand- maybe bold or in your in face.
I hope these new leaders can create an nurture that message.

Gene Detroyer
Gene Detroyer
13 days ago

Gap and its brethren have serious brand issues. What they represent in the consumer’s mind is not pretty. It is tough to change brand perceptions. The success stories are few.

At this point, the real question is, “Can Dickson and Blakeslee get it done?” As Neil notes, they are up against an embedded corporate culture. Cultural turnaround is a bigger challenge than a brand turnaround.

One of my favorite quotes…”Culture eats strategy for breakfast, lunch, and dinner.”

Allison McCabe
Allison McCabe
13 days ago

Like turning the Queen Mary…the first step is setting a course to answer the “why”? Why does Gap exist and why should the customer care? Old Navy does everything that Gap ever did at a price. Athleta has a defined identity. Banana Republic is searching for one.
If Barbie and Hot Wheels can become cool again, there is hope for the Gap. The employees need to believe that.

Jeff Sward
Jeff Sward
13 days ago

The Gap division product content has been so risk averse for so long that it finally drifted into price promotion and discounting to drive the business. Now it has the incredibly difficult task of finding a way to differentiate both product and marketing and also extracting itself from the deeply promotional position it created for itself. And achieving differentiation in everyday wear is a tall order. At its’ peak, Gap appealed to a spectrum of customers ranging from teens to boomers. Teens to grandparents. Whole families. And it was with predictable product and brilliant marketing. It won’t be that simple this time around. Differentiation. Value. Managed scarcity. Brilliant marketing, both in-store and on-line. A tall order indeed! But I really like the track record that both executives are bringing to the game.

Melissa Minkow
Melissa Minkow
13 days ago

These leaders are great, and people certainly matter, but they have to be making the right decisions for the brand. I’m cautiously optimistic, the issue is just that there are many variables for them to re-visit and update regarding this brand.

Dick Seesel
Dick Seesel
13 days ago

Mr. Dickson certainly breathed life into a 64-year-old brand, although not without plenty of help from the PR machine supporting the Barbie movie. And Gap’s biggest problem is brand relevance (which goes hand in hand with better merchandising).

It’s hard to see how one new leader can succeed where a string of prior CEO’s failed. Some of them had retail background (inside and outside of Gap), some of them had CPG backgrounds — but none of them was able to turn this ship around. The smart play may be to simply eliminate the Gap brand and consolidate resources behind Old Navy, even though it sounds like corporate heresy.

Lee Peterson
Lee Peterson
13 days ago

This is actually kind of humorous — why not Steven Spielberg?? He’s pretty good. I’m waiting for the return of Mickey Drexler just so i can envision the groveling on the Fisher’s part. Gap needs drastic change: fewer stores, merch re-do, used / vintage gap stores / different real estate .. . ..they need to pull off the band aid and get to 2025, painful as it might be, they should move to next, take the hit and become New Gap asap

Craig Sundstrom
Craig Sundstrom
  Lee Peterson
13 days ago

Ah , yes, the Fisher’s: the one constant over years of lackluster performance (and one of whom is currently attracting a lot of attention , for all the wrong reasons). If, as seems to be the argument of many here, company culture is the problem, that might be a good place to start.

David Fischer
David Fischer
13 days ago

Gap branded clothes are being sold at Sam’s Club. Most of their retail stores have closed, and the few left carry clothes that are essentially available elsewhere for less. Gap as a high fashion brand as it was in the 80s and 90s is done. Old Navy and Banana Republic still have a chance at a turnaround. Old Navy is the H&M and Pathmark challenger. Banana Republic may still have some cache as an upper mid-range brand but they may want to pull back on the rampant discounting such as selling at Costco and the proliferation of Factory Stores. Athleta is an opportunity as well but today lacks differentiation from Lululemon. The new team may turn things around but it will be the challenge of their careers.

Brandon Rael
Brandon Rael
13 days ago

If Richard Dickson and his leadership team can spark a business transformation at Gap, it would be one of the most significant turnarounds in recent history. The challenges at the Gap are similar to the disruptions and downturns that formerly dominant retailers such as Sears, Bed Bath & Beyond, Toys R Us, and others experienced that led to their bankruptcies or their being a fragment of what they once were. Dickson and the team must instill a culture of change, transformation, courage, and a willingness to fail while taking calculated innovation risks.

The Gap has had significant challenges in remaining relevant in a retail landscape and consumer base that has moved on to other more trendy and socially viral brands. As Dickson and his leadership team develop authentic ways to reignite the Gap brand, it is crucial to consider that Gap Inc. has numerous brands, each with its own customer segments, assortment, pricing, and promotional strategies.

There will be a delicate balancing act for Gap and the associated brands of removing costs in a meaningful way, reinvesting in product assortments, improving store layouts, connecting the digital experience, and optimizing the supply chain. The overall quality and merchandising strategies have been off, and customers have moved on from the Gap. The first critical step of a monumental business transformation and turnaround plan for Dickson and the team is to reimagine the Gap mission statement, the brand’s purpose, its reason for existence, and how to resonate with GenZ and younger generations.

Craig Sundstrom
Craig Sundstrom
13 days ago

GAP has its own “proven track record”, and it’s been one of decades of poor performance. Do I think two new faces , however impressive their CV’s might be, will suddenly change that? No. How about gradually, then? Will they last long enough for us to find out ?

Carlos Arambula
Carlos Arambula
13 days ago

GAP has been struggling due to a lack of differentiation in marketing and an unclear product identity for several years now. This longstanding issue has made it difficult for GAP to maintain a distinct brand presence amid tough competition and shifting consumer behaviors during the pandemic.

Competitors like Uniqlo have effectively filled the space that GAP once occupied with its utilitarian-style product offering. Consequently, GAP must act swiftly to redefine its brand, establish a strong connection with a specific consumer segment and occasion.

The appointment of new leaders offers hope for positive change as they bring fresh perspectives and innovative approaches to GAP’s challenges. However, it’s important to understand that transforming the brand will be a gradual process, not an immediate fix. The primary focus initially should be on halting the decline in sales.

In the long run, GAP needs to differentiate its products effectively, cater to specific consumer segments, and adapt to contemporary shopping behavior . While it may take years to refresh the brand’s image, prioritizing customer-centric strategies will be key to its success.