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NEW YORK — Gap Inc. is bringing in the head of its outlet division to lead its Gap brand stores across North America in one of several changes intended to revive the chain's sagging sales.
The nation's largest clothing chain announced the changes Wednesday, but some analysts believe that the appointment of an insider falls short of addressing worries about the product itself.
The company also plans to merge the operation of its Banana Republic and Gap chains with the outlet division, which includes Banana Republic Factory and Gap Outlet stores. Other changes include creating a new global creative center for the brand that will be based in New York, not San Francisco, the parent company's home.
The New York-based ad agency Ogilvy & Mather Worldwide will become the chain's agency globally. Gap had used Laird & Partners.
The company said Art Peck, 54, will replace Marka Hansen as leader of the Gap brand for North America. Hansen is leaving the company on Friday after 24 years.
And it said Seth Farbman will become global chief marketing officer for the Gap brand. Farbman is currently worldwide managing director at Ogilvy & Mather, where he developed creative campaigns for consumer brands such as Coca-Cola, UPS, Unilever and Time Warner Cable.
The company said Pam Wallack, the current president of Gap Adult North America, will become head of Gap's new global creative center and move to New York from San Francisco. From New York, she will work with the company's divisional presidents based in London, Tokyo, Shanghai and San Francisco.
"I expect more from our Gap business in North America," Glenn Murphy, chairman and CEO of Gap Inc., said in a statement. "The changes we're making are intended to propel the brand to deliver the product and brand experience our customers demand worldwide."
In addition to Gap and Banana Republic stores and outlets, Gap Inc. operates clothing sellers Old Navy, Piperlime and Athleta.
"New York will now serve as the global epicenter for creativity for the Gap brand, which is exactly what we need to compete effectively here at home and internationally," Murphy said. With this move, Gap's marketing team will join the company's product design team in New York.
The move builds on the momentum from successful store openings in China and Italy, Murphy said.
The news comes four months after the Gap brand announced — and then quickly withdrew — a new logo that was roundly criticized by customers and branding experts.
Peck joined Gap Inc. in 2005 from The Boston Consulting Group, an international strategy and general management consulting firm, where he was senior vice president and director. For his first three years at Gap, he led corporate strategy and international business development, later moving to the outlet division.
As president of the outlet division, Peck led a business with more than 300 Gap Outlet and Banana Republic Factory Stores.
The company said in January that December revenue in Gap brand stores open at least a year, a key indicator of a retailer's financial health, fell 8 percent. The company's other chains did much better: The measure rose 1 percent at Banana Republic and fell just 2 percent at Old Navy.
The Gap division hasn't posted a gain on an annual basis since 2004. Amy Noblin, a retail analyst at Weeden & Co., wrote in a report published Wednesday that the series of changes, while broad in scope, "fall short of addressing our concern regarding merchandising without more color on direction."
"The revolving door of talent and various strategies to revive the brand over the years underscores how difficult it is to execute a turnaround of this magnitude, " Noblin wrote. "Mr. Peck is well-respected internally for his leadership skills and proven business results, but we do not think going with an internal hire is necessarily the direction the Street was looking for. ... We continue to think the underlying issue for Gap brand is the product."
