Management
Gap Inc. incoming Chief Executive Officer Art Peck is overhauling management at the ailing Banana Republic and Gap brands. Jeff Kirwan, 48, will replace Stephen Sunnucks as global president for the Gap chain in December, and Andi Owen, 49, will succeed Jack Calhoun on Jan. 5 as global president for Banana Republic, the retailer's upscale chain. The move marks Peck's first major decision since CEO Glenn Murphy said last month that he will step down in February.
Almost 5,000 people have signed a petition calling for Kmart to ensure that its workers have enough time off on Thanksgiving, part of a backlash against retailers that are open during the holiday. "We understand that it's retail, and employees understand that they have to work hours on holidays," the campaign's organizer, Jillian Fisher, said on the website coworker.org. "However, Kmart's unnecessary hours are forcing its employees to miss out on important time with their families." This year, Kmart stores will operate for 42 hours straight, until midnight on the Friday after Thanksgiving.
Patagonia is different from most retailers. The outdoors outfitter has a habit of telling customers not to buy its products. On Black Friday last year, the company had an "anti-Black Friday" event, encouraging people to get their gear repaired instead of buying new stuff. At the head is CEO Rose Marcario, who spent 15 years in finance before making the jump to Patagonia. We talked with Marcario about how Patagonia promotes social and environmental good — while also making profits.
Guitar Center has chosen retailing veteran Darrell Webb to be the company's new president and CEO. From 2011 to 2013, Webb served as chairman and CEO of the Sports Authority. Webb has more than 30 years of experience in retailing and has led several multibillion dollar companies. "Given Darrell's extraordinary track record of success in growing and leading large specialty retail companies, we're confident in his abilities to enhance Guitar Center's customer experience and further bolster the company's position as a world-class omnichannel retailer," said David Kaplan, a member of Guitar Center's board of directors.
Brookstone will appoint senior retail executive Thomas M. Via as president and CEO, and as a member of its board of directors, effective Dec. 1. Steven H. Schwartz, who had been serving as interim CEO, will resume his role as chief merchandising officer. Via spent the past 12 years at Toys"R"Us, most recently as its senior vice president for Babies"R"Us in the U.S., where he was responsible for providing leadership for the company's juvenile product growth strategy and served on the Global Commercial Committee.
As if you don't have enough to worry about this holiday season, a report came out earlier this month that American retail staff steal a lot more from their employers than actual dedicated thieves. According to The Global Retail Theft Barometer report released by Checkpoint Systems, employee theft cost U.S. retailers $18 billion in 2013.
Abercrombie & Fitch, after making numerous management changes to appease angry shareholders this year, is still facing heat for CEO Mike Jeffries’ spending and his partner's excessive involvement in the business. The company is aiming to settle a lawsuit brought by a Florida pension plan at the end of August, which documents a host of bad behavior by Jeffries, his partner Matthew Smith, and Abercrombie's board. The shareholders, furious over the more than $140 million Jeffries has made since 2008 despite Abercrombie's lackluster performance, were able to obtain hundreds of internal corporate documents for review as part of the lawsuit.
Old Navy becomes the latest brand to find itself embroiled in a plus-size controversy. It's under fire for charging women more for plus-size jeans, sizes 16 to 30. Men, meanwhile, pay one price for a pair of denim no matter the size. A Change.org petition — which has already gathered over 25,000 supporters — notes the price disparity can be up to $15 for women. For years, plus-size women have paid higher prices because manufacturers claim more fabric leads to higher production costs. But the petition argues this doesn't hold true if manufacturers and retailers are discriminating between genders.
American Apparel, a beleaguered retailer still wincing from a boardroom struggle over the summer, said sales fell 5 percent in the third quarter and losses grew - dragged down in no small part by its own investigation of the behavior of Dov Charney, who was fired as chief executive in June. The company, which has been without a permanent chief executive ever since, reported a net loss of $19.2 million, or 11 cents a share, most of which was nonrecurring costs
Three months into his tenure as CEO for wellness and supplement retailer GNC, Mike Archbold could hardly sound more optimistic about the company and the business. "There are so many great things about this brand," said Mr. Archbold, 54, citing GNC's position as market leader and its strong cash flow, as well as customers whom he declared "the most loyal in the industry." Yet, when Mr. Archbold's appointment was announced in early August, the company's recent history prompted one website to blare: "Michael Archbold takes the hot seat."