By  on February 10, 2010

Gap Inc. is resetting its top ranks in an effort to correct prolonged product issues at the Gap division, sustain momentum at Old Navy and possibly bring the chain overseas, WWD has learned.

The moves also identify Gap’s future leaders.

In the biggest change, Pam Wallack will become president of Gap adult and body, filling a slot vacant for 18 months since the departure of Gary Muto, who is president of Loft. Those duties were being handled by Marka Hansen, president of Gap North America, and other executives. Wallack, who was running Gap kids and baby businesses for the past five years, will report to Hansen.

Succeeding Wallack as head of Gap kids and baby businesses is Mark Breitbard, who since last year has been Old Navy’s chief merchandising and creative officer. Previously, he was president of Levi Strauss & Co.’s retail division and senior vice president and general manager at Abercrombie & Fitch Co., but he held merchandising jobs at Gap, Old Navy and Banana Republic from 1997 to 2005.

At Old Navy, Nancy Green, head of new business development for Gap Inc., will become chief creative officer and executive vice president of new business development, reporting to Tom Wyatt, president. She will explore taking Old Navy overseas and work with Stephen Sunnucks, president of Gap in Europe and international franchising, and John Ermatinger, president of Gap in Japan. Old Navy operates in the U.S. and Canada. Gap and Banana Republic have stores in Europe and Asia, as well as in the U.S. and Canada.

The leadership changes were disclosed internally this week.

Glenn Murphy, Gap’s chairman and chief executive officer, told employees the changes “illustrate the strength of our merchant community as well as the value of thoughtful succession planning.”

Hansen now has fewer executives directly reporting into her, enabling her to focus on product, among other priorities.

The Gap division has long been struggling with merchandise and attracting sufficient traffic through its doors. Gap has lost market share to a variety of rivals, from Aéropostale to Hot Topic and American Eagle Outfitters. Recently, Gap adapted the mantra “win on product.”

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