(Filed Under Fashion News). Gap Inc. is implementing several immediate changes aimed at addressing its flagship brand’s lagging sales, including appointing Art Peck president of Gap North America to replace Marka Hansen. Hansen’s last day of employment is Friday, February 4.

“I expect more from our Gap business in North America,” said Glenn Murpy, chairman and C.E.O of Gap Inc. “The changes we’re making are intended to propel the brand to deliver the product and brand experiences our customers demand worldwide.”

Peck has worked for Gap Inc. for six years, heading its outlet division for the past three. The company called him instrumental in developing the company’s franchise and international growth platform ventures.

Gap Inc. is also shifting its creative global epicenter from San Francisco to its offices in New York City, and has appointed Pam Wallack, current president of Gap Adult North America, head of the New York office. She will be in charge of design, marketing, fashion public relations and production, working with the company’s divisional presidents in London, Tokyo, Shanghai and San Francisco.

The global design team, led by Patrick Robinson in adult and Jennifer Giangualano in kids and baby, will also be based in New York.

Along with the shift, Gap Inc. has named New York-based Ogilvy & Mather Worldwide as the new advertising agency for the Gap brand, and has appointed Seth Farbman chief marketing officer. As managing director of Ogilvy, Farbman has developed campaigns for Coca-Cola, UPS and others.

The company is also merging operations of its outlet division with the Gap and Banana Republic brands. “The outlet team is known for working in a nimble and decisive manner, which has contributed to its impressive growth,” Murphy said. “We’ll tap into the strongest leaders from both Gap and the outlet division to drive sustainable growth going forward.”

Gap North America has failed to pull in an annual sales increase in stores open at least a year since 2004, The New York Times reported on February 1, adding that analysts speculate that consumers are unimpressed by Gap’s merchandise offerings.

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Published 02-04-2011 by Amanda Torres Price