Gap is hoping for a Barbie-like turnaround with its new chief executive officer, Richard Dickson. Previously at Mattel Inc., Dickson played a crucial role in revitalizing Barbie’s image through creative marketing campaigns, diversifying the range of dolls, and collaborating with other brands. It seems that Gap wants to replicate this success after the recent box office success of the movie “Barbie,” directed by Greta Gerwig.
Gap, which owns several brands including Old Navy, Banana Republic, and Athleta, is currently facing declining sales and an evolving customer base. Increased competition from online retailers and a decrease in consumer spending on discretionary items like clothes have added to the company’s challenges. In May, Gap Inc. reported a 6% decrease in overall net sales compared to the previous year.
As he prepares to join Gap on August 22, Dickson expressed his excitement about working with the teams to evolve Gap Inc. for a new era. The appointment of Dickson follows a prolonged search process after the departure of the previous CEO, Sonia Syngal, in July 2022. Gap’s Athleta brand also recently appointed a new CEO, Chris Blakeslee.
According to analyst Jonathan Reid, Gap has lost its brand relevance with its core consumer, much like Mattel did a few years ago. To regain relevance, collaborations and a strategy to attract a wider range of shoppers will be crucial. Notably, Gap and Barbie collaborated ahead of the movie’s premiere. Despite Gap’s stock decreasing by 18.8% this year, the announcement of Dickson’s appointment led to a rise of over 7% in early trading on Wednesday.
Dickson, who has been a board member at Gap since November, is regarded as a transformational brand builder with a belief in the power of inclusivity. Gap’s interim CEO, Bob Martin, believes that Dickson’s experience and mindset make him the perfect fit for Gap Inc.
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