• Bloomberg, Thursday, October 14, 2010 9:32 AM

Now that its logo imbroglio is behind it, Gap CEO Glenn Murphy has more nettlesome problems to tackle such as improving sales, which have fallen for six straight months in its more than 3,000 stores. They have failed to differentiate themselves from Hennes & Mauritz, Forever 21, J. Crew Group and the like, Matt Townsend reports.

"Something I get in a Gap, I can get elsewhere," Morningstar analyst Zoe Tam says. Another analyst says that Gap may be great at R&D but it's not so great at creating cutting-edge fashion. Gap also operates the Banana Republic and Old Navy chains.

"Glenn and the company's management team have been focused on gaining market share in North America," says Bill Chandler, a spokesman for Gap. The Gap brand is evolving to a more modern look and will unveil images from its holiday advertising during a meeting with analysts today, he says. It is also remodeling stores and ramping up marketing for specific products such as black pants.

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