Gap Taps Disney Parks Chief as CEO
Thu Sep 26, 9:26 AM ET

CHICAGO (Reuters) - Gap Inc. , the largest U.S. specialty apparel retailer, on Thursday said it named Paul Pressler, head of Walt Disney Co.'s theme parks and resorts unit, to succeed Millard "Mickey" Drexler as its chief executive.

Gap said Pressler will become president and CEO effective immediately, putting him in charge just in time for the all-important holiday sales period. The company had said Drexler would retire as soon as a successor was found.

The San Francisco-based company -- which operates over 4,200 Gap, Banana Republic, and Old Navy stores -- has been seeking a successor for Drexler since May.

Pressler, 46, is a 15-year veteran of Disney. His retail experience includes three years at the helm of Disney Stores.

During his tenure, Disney Stores grew to 335 from 160 in eight countries. He comes to Gap in a period of slowing growth rather than rapid expansion.

Some analysts have criticized the retailer for continuing to open new stores as same-store sales lag.

"He did run Disney stores, so there is considerable familiarity with the problems and opportunities that exist in the area of retailing," said Kurt Barnard, president of Barnard's Retail Consulting Group.

"What he has to try to do is bring more customers into Gap and get them to buy more merchandise that is not marked down, as has been the case for a long time."

Gap, once hailed as a beacon of retailing success, has foundered for more than two years after an ill-fated foray into trendy clothes that alienated traditional Gap customers. Earlier this month, it reported its 29th straight month of declines in sales at stores open at least one year.

Drexler, 57, is considered by many to be the brains behind Gap's meteoric growth and its influence over American casual style in the 1990s, but he was at the helm when Gap made an ill-fated foray into trendy clothes that alienated the traditional Gap customer more than two years ago.

The stock closed on Wednesday at $11.99 on the New York Stock Exchange ( news - web sites), at the low end of its 52-week range of $17.14 to $9.25.