Gap's CEO Pick Surprises

Howard Davidowitz, a longtime industry veteran who is chairman of Davidowitz & Associates, a New York-based retail consulting and investment banking firm, says he is puzzled by Gap's choice of leadership.

"The people who drive companies are fashion geniuses -- the people who fall on their face are people who are not," Davidowitz says.

The company's three division leaders all come with plenty of apparel experience under their belts, including Marka Hansen, president of the Gap division; Dawn Robertson, president of Old Navy; and Jack Calhoun, interim president of Banana Republic. But Davidowitz wonders how far that will go.

"The heads of the businesses now are losing market share, and the people there now have been there for years," he says, noting the exception of Robertson, who was hired last year.

Montagna says that recruiting a CEO with apparel experience is no easy task. Most are unwilling to give up their top positions, especially to come to a company with so many woes.

Nonetheless, Montagna says Gap may benefit from Murphy's experience working with mature retailers. When he first stepped in as CEO for Shoppers Drug Mart, the company already had 800 stores.

"I think the fact that he's worked for mature retailers is a big help because certainly Gap is mature," Montagna says. "He has a track record of success so hopefully he can do the same again."

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