The Gap retailer is hoping for a Mattel-style turnaround. Five days after the launch of the Barbie movie, Gap announced on Wednesday that its next CEO will be Richard Dickson, boss of the toymaker since 2000.
Under Mr. Dickson, Barbie’s image improved through creative marketing campaigns and the release of Barbie dolls of diverse backgrounds and body types. Mattel has also teamed up with brands to change the public perception of this famous – and often controversial – doll.
During the weekend, the film Barbie, by Greta Gerwig, brought in 162 million US in North America (about 215 million CAN). This success follows a long marketing campaign that has boosted awareness of the blonde doll among a wide range of consumers, adults and children. Spectators – often dressed in pink – rushed to the cinema.
“Relaunching this brand and resonating with the general public is very important to Mattel’s turnaround,” said Jonathan Reid, Director of Retail at Fitch Ratings, noting Mr. Dickson’s role in this regard.
Gap, which also operates the Old Navy, Banana Republic and Athleta brands, needs a Barbie-like revival. Sales of this 52-year-old brand are declining and the tastes of its clientele are changing rapidly. Heavily invested in shopping malls, Gap has suffered from increased competition from online retailers and is not immune to the industry-wide problem of consumers cutting back on discretionary spending, including clothing.
In May, Gap Inc. announced a 6% decline in global sales compared to May 2022, with the decline affecting all of its brands.
Prior to Mattel, he worked at Bloomingdale’s and founded an online cosmetics retailer that was later acquired by Estée Lauder.
Mr. Dickson will leave Mattel on August 3 and arrive at Gap on August 22. He has served on the Gap board since November.
The search for a leader for Gap has been long. Ex-CEO Sonia Syngal left the company last July amid falling sales and supply issues, which reduced revenue. Gap’s Athleta brand also went months without a CEO before Monday’s appointment of Chris Blakeslee, formerly of Alo Yoga.
“The Gap brand has lost its relevance to its customer base,” says Reid. “His positioning is unclear. Like at Mattel a few years ago. »
For starters, Gap could collaborate with other brands to increase its visibility to more shoppers. (Gap and Barbie launched a collaboration ahead of the film’s premiere.)
Gap’s stock is down 18.8% since January, but jumped a few points on Wednesday following Mr Dickson’s appointment.
“During our long and thoughtful search, it became clear that Richard was right for this role at this exact time,” Board Chairman Bob Martin, who served as interim CEO, said in a statement. “His experience building transformative brands and his belief in the power of inclusion makes him an ideal fit for Gap Inc.”
