Well, the big news that caught my attention today is that Gap’s CEO has stepped down from his position. Paul Pressler joined the company four years ago and promised to turn the company around. However, that didn't happen, so investors agreed that Pressler should be fired. He leaves the company with a $14 million severance package. How a company that’s already down in the dumps can even afford severance pay like that is beyond me.
Last week I talked about the things that Gap could do to improve itself. Today it suddenly dawned on me what Gap could do.... Lower prices! They’re competing against places like H&M or Aeropostale - companies that have much lower prices on denim and basics. But then...lowering prices doesn’t necessarily boost sales.
Herb Greenberg says that Gap shouldn't hold their breath for Drexler's Return...