Gap, the apparel giant, has appointed branding veteran Richard Dickson as its new CEO, following a yearlong search for a suitable candidate. Dickson, who played a key role in the revival of Mattel’s Barbie franchise during his tenure as president and chief operating officer, will assume his new position on August 22nd. This announcement comes just days after the successful opening of the “Barbie” movie, which grossed $155 million in its first three days, making it the biggest film debut of the year so far. Dickson, who has spent two decades at Mattel, is credited with reviving iconic brands such as Barbie, Hot Wheels, and Fisher-Price.
Dickson, a UCLA graduate, has a long history in the apparel industry. He co-founded online beauty retailer Gloss.com in 1999 and has held executive positions at renowned brands such as Bloomingdale’s, The Barbie brand, and Nine West’s parent company, The Jones Group. He returned to Mattel as a C-suite executive before his appointment as Gap’s CEO. In addition to his new role, Dickson has been serving as a member of Gap’s board of directors since November.
Upon the announcement of Dickson’s appointment, Gap’s stock rose by nearly 7.5%, reaching $9.89 per share. The company, which includes popular brands such as Old Navy, Banana Republic, and Athleta, has been facing tough competition from fast-fashion giants like Zara and online sellers like Shein. To cut costs, Gap recently laid off 1,800 employees at its corporate headquarters, saving the company up to $300 million. This move comes after the elimination of over 500 corporate positions last September due to declining sales and profits. With approximately 95,000 employees worldwide, nearly 10% of whom work at the corporate offices, Gap has been struggling to turn the tide after the ousting of former CEO Sonia Syngal in July last year.
Dickson’s arrival as CEO comes at a critical time for Gap. The company has been striving to reduce costs and compete with industry leaders such as Zara. It has already laid off over 2,000 employees since late 2022 and cut ties with rapper Kanye West, also known as Ye, after a failed partnership. The fallout from this partnership led to Gap suing Ye for $2 million over unapproved changes made to a rental property.
The challenges continue for Gap, as Art City Center, the company claiming ownership of the building leased to Gap, filed a lawsuit last year, alleging damages to the property caused by the Yeezy Gap collaboration. The collaboration was initially intended to span ten years but was cut short by Gap after its venture with Ye turned sour.
Overall, Richard Dickson’s appointment as Gap’s CEO signals a new chapter for the struggling retailer, as it seeks to regain its standing in the competitive apparel market. With his proven track record in brand revitalization and extensive experience in the industry, Dickson may hold the key to Gap’s success in the coming years.
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