Gap Inc. has ended its seven-month search for a new chief executive, picking Glenn Murphy, former chief executive of Canadian drug store chain Shoppers Drug Mart to lead the clothing retailer.
 
Shoppers Drug shares nearly tripled during Murphy’s tenure. But his lack of apparel experience raised a note of caution among some analysts.

Below are some of the Wall Street reaction following the announcement of the hire:

– “The problem is the guy does not have an apparel background. That tells you that those people they asked in the apparel world all said no,” C.L. King analyst Mark Montanga.
 
– “We believe Murphy’s track record of redefining customer in-store experiences, expanding categories, and driving comp and earnings growth provides a solid base from which to tackle Gap’s current challenges,” Citigroup Global Markets analyst Kimberly Greenberger. She also upgraded Gap to “buy” from “hold.”

– “Although his background is not in apparel, Mr. Murphy has a great deal of retail and merchandising experience and we believe has a strong team of merchants already positioned in the organization,” Friedman Billings Ramsey analyst Adrienne Tennant.

– As opposed to previous CEO Paul Pressler, a former Disney executive with little experience in store retailing, Murphy has “a deep understanding of store productivity, supply chain mechanics and customer preferences … It sends a clear message: with many of the original issues still remaining, Gap needs operational excellence to rejuvenate its brands,” Lehman Brothers analyst Jeff Black.

(Photo: Gap corporate Web site.)