On Monday, denim veteran label–Gap, announced the replacement of its current Chief Executive Officer Sonia Syngal, 52. After two years of serving the position, the current head at Gap wasn’t able to accelerate the label’s growth and status among American shoppers. This led to an increase in costs and major discounts, signally at the diminishing quarterly profit.
After Syngal’s departure, the brand welcomes Chairman Bob Martin to take over as an interim CEO. Besides, Bob Martin, ex-Walmart Canada top boss Horacio Barbeito will play the lead for the company’s biggest brand– Old Navy. According to reports, Sonia’s leadership struggled to capitalise on rapid changes in apparel trends after a major shift from the pandemic. Moreover, the company’s much-talked-about collaboration with Kanye West’s Yeezy did not bear fruitful results, with no signs of release, post the project announcement. Another key observation made by Morningstar analyst, David Swartz stated “Old Navy was going in the wrong direction and that can’t happen because it’s so critical to the overall business.”
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Earlier this year, the brand also pinpointed some execution issues faced by Old Navy and said a shift to formals and partywear from more casual apparels, left the brand’s selection “out of sync.”
Gap’s stock has fallen more than 75% from highs in May 2021, and in June it fell down to its lowest in more than two years. However, the brand did not specify the reason leading to Sonia’s exit, but the numbers are all that speak up a story for us. This move also indicates a reduced segment of women leader’s representation in US public companies.
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