Gap CEO Glenn Murphy to Resign; Digital Head Art Peck to Take Over

Gap Inc., the famous clothing retailer, announced Wednesday that its CEO Glenn Murphy will be stepping down in February 2015 and Art Peck, the innovation and digital head of the company, will take over his role.

Murphy has decided to step down from the role after seven years for personal reasons. Gap's board unanimously chose Peck as the new head of the company as he has enough insider experience and has led the company to new financial heights during his tenure.

"Today, Gap Inc. is a formidable global fashion retailer with a strong foundation in place for long-term growth, therefore making this an appropriate inflection point for me to pass the baton to a leader who will take our portfolio of brands to even greater heights," Murphy said in a statement.

"With consumer expectations rapidly evolving, Art is the right leader at the right time to build on our success and ensure a compelling experience for our customers across both our physical and digital channels," he added.

Peck led the North American division of Gap in 2011 and 2012. He also headed the outlet business segment of Gap and Banana republic. In the initial years of his tenure , he served as the head of development of the global strategy in franchise markets.

Peck says he is honored to have been chosen as the next CEO of GAP.

"I'm honored to be given the opportunity to lead this company with such powerful brands and incredible talent - a combination that sets us apart globally. Our success will be based upon presenting brand-right, emotional product to our customers, both in stores and online. Building upon the foundation Glenn has established, we will be focused on continuing to execute our strategy to drive long-term shareholder value," Peck added in the statement.

Peck will simultaneously work on boosting the digital traffic for Gap stores. The company also announced its sales report claiming that its sales had gone up one percent in September on a year-over-year basis.

"September proved to be more challenging than we expected," Glenn Murphy said in the sales report.

"While Old Navy and Banana Republic are performing well, we are working aggressively to ensure our entire portfolio of brands delivers to its potential," he added.