By Gary Symons
TLL Editor in Chief
The apparel giant Gap Inc. has hired Mattel president and COO Richard Dickson as its new CEO, starting August 22.
Gap is the largest specialty apparel company in the U.S., with a portfolio that includes Old Navy, Gap, Banana Republic and Athleta.
However, like many other fashion companies, Gap suffered through the COVID-19 pandemic, and both its sales and its stock price remain soft. Gap says Dickson is being brought on board thanks to his stellar work at Mattel.
“Richard has invaluable expertise in areas critical to the work Gap Inc. is doing to strengthen the company for the long term,” said lead independent director, Mayo A. Shattuck III. “We are thrilled to have his visionary leadership as the company redefines the future potential of Gap Inc. and its renowned American fashion brands.”
And speaking of brands, both Gap and business analysts point out that in his role at Mattel, Dickson was a key player in the stunning revitalization of Mattel brands, particularly Barbie, Hot Wheels and Fisher-Price.
“Dickson will join Gap Inc. from his most recent role as President and Chief Operating Officer of Mattel, where he was a lead architect in a global corporate transformation that has reinvigorated Mattel’s iconic brands …, as well as restored the company to growth and reaffirmed Mattel as an industry thought leader.”
Dickson is already playing a role at Gap, as he was appointed to the Gap Inc. Board of Directors in November last year. The Mattel veteran says he’s eager to build on the work done by Bobby Martin, who was appointed as interim CEO and is credited with having made some tough decisions to halt the company’s decline, and positioning Gap for future growth. Martin took the reins after the former CEO Sonia Syngal stepped down last year after an 18 year stint with the company, including two years as CEO.
“Under Bobby’s leadership, the team has begun to truly reset the company for long-term success, establishing a new foundation that I’m eager to build on,” Dickson said. “Gap Inc. is a portfolio of iconic brands, known for having defined American style with bold thinking and making quality fashion accessible to millions, but it’s the work ahead that excites me most, the chance to work hand-in-hand with the teams to evolve Gap Inc. for a new era.”
Martin himself is staying with the company and will remain as the board chair, tasked with helping the transition to the new CEO. Martin said after working with Dickson on the board, he’s convinced he’s the right person for the job.
“Amidst a deliberate and thoughtful search process, it became clear that Richard is destined for this role at this moment,” Martin said. “His experience as a proven transformational brand builder and belief in the power of inclusivity, make him a perfect fit for Gap Inc.” Martin added, “I’m incredibly proud of the organization’s commitment to the success of this company, as they are embracing operational rigor, regaining product and customer obsession, with an eye on modernizing the way we work, all of which becomes a strong foundation for what’s ahead.”
But what’s ahead is going to mean a lot of work and tough choices for Dickson and the team at Gap, which has suffered a long decline after its heyday as arguably America’s top apparel brand in 1980s and 1990s. Gap rode the expansion of shopping malls during that era, but as mall sales slumped in the era of ecommerce and increased competition at price point from rivals like Zara and H&M, the sales at Gap’s various brands slowly declined. As a result, Gap is planning to close 30% of its Gap and Banana Republic stores in North America by the end of 2024.
It’s worth noting that the decline at Gap Inc. began long ago, and has continued under the leadership of several CEOs, so the issues are much broader than the performance of a single CEO. According to earnings reports, Gap suffered 24 quarters of decline even under the leadership of Mickey Drexler, who originally grew Gap into the powerhouse it became in the 1990s. Since Drexler stepped down in 2002, Gap has tried out several CEOs, including former Disney executive Paul Pressler, drugstore executive Glenn Murphy, and the internal hires of Art Peck and Syngal.
One analyst, Neil Saunders, said the challenge facing Dickson goes right down to the roots of the company, which must adapt to huge changes in the apparel and retail sectors over the past two decades.
“The core Gap brand is in desperate need of reinvention, the deep-seated problems at Old Navy need to be addressed, the faltering recovery at Banana Republic needs to be put back on track, and the now fading momentum at Athleta needs to be reinvigorated. In short, being CEO of Gap is not for the faint of heart,” Saunders said in an interview with CNN. But Saunders also believes Dickson is an excellent choice for the company, because he has the experience of revitalizing brands after a period of decline.
“His reinvention of the Barbie franchise, which is currently riding on a high, is also proof that he understands how to turn around established brands that have run out of energy and steam,” he said. “This is exactly the challenge he will need to address at Gap.”
Dickson comes to Gap Inc. from his leadership role at Mattel, where he led a portfolio of global brands, overseeing innovation strategy, design and development, brand marketing and franchise management. Under his leadership, the company developed and launched the Mattel Playbook, a brand-building approach that has been instrumental in growing Mattel’s power brands and accelerating Mattel’s transformation.
Importantly, Dickson also has deep experience in the fashion industry. Prior to Mattel, Dickson was President and CEO of Branded Businesses for The Jones Group, where he led global design and development, including marketing and merchandising, wholesale, retail, and e-commerce, brought new relevance to dated fashion labels, and acquired and developed new brands. Dickson also co-founded Gloss.com, the first online retailer dedicated to high-end cosmetics, and served as an executive at Bloomingdale’s.