Management Turnover as Change Agent

Monday, March 3, 2008

Gap CEO Continues to Show Promise - Update 2

Todd Sullivan, a financial blogger, wrote a piece that appeared in today's Seeking Alpha that rightfully praised efforts by Glenn Murphy, the new CEO of troubled retailer The Gap GPS (NYSE), to turn the company around. Murphy put together a plan, and up to this point, has managed to execute it quite successfully.

Back when Murphy was first appointed in July of last year, many analysts raised doubts on his selection due to his lack of retail clothing expertise, I on the other hand was quite positive about the selection. While it was true, Murphy had little retail clothing expertise, he managed in his previous position as CEO of Shoppers Drug Mart in Canada to demonstrate an uncanny talent for running a successful business that relied on merchandising and retail expertise. Murphy still has a long way to go with the Gap, especially in this difficult retail environment, but he deserves praise for his efforts and results so far.

Stay tuned.

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