He also made the company an early adopter of strategies that integrate the physical and digital shopping experiences, including the ability for consumers to reserve items in-store. Recently, the company has ramped up its global expansion agenda, including plans to open about 40 franchise Gap stores in India.
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During his tenure, the company delivered a total shareholder return of more than 160 percent. In the last three years, its global sales have added more than $2 billion.
Murphy said that he has no plans beyond January; he just couldn't make the long-term commitment to Gap that's needed for its next stage. Both Murphy and Peck emphasized that it will be an orderly transition, and that the two are highly aligned in their strategy.
Incoming CEO Peck joined Gap in 2005. He previously served as president of Gap North America and as head of the company's outlet business, which he took global.
"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," Murphy said.