Clothing retailer Gap announced that Glenn Murphy will step down as CEO of the company and Art Peck will be new chief executive officer, effective February 1, 2015.

Murphy decision to retire from the company comes after seven successful years in his current role.

The change comes at a time when retailers overall grapple with stiff competition and tough economic conditions, while Gap moved ahead with comparative ease.

Peck is currently president of Gap’s growth, innovation and digital division. He delivered significant results for Gap in a variety of brand, strategy and operational roles since joining the company in 2005.

Among his various roles within the company, Peck led the North American division for Gap brand in 2011 and 2012, overseeing the product resurgence that successfully improved its business results.

Separately, Gap said its same-store sales were flat for September 2014. For the five-week period ended 4 October 2014, net sales were $1.48bn, compared to $1.46bn for the five-week period ended 5 October 2013.

Gap chairman and CEO Glenn Murphy: "September proved to be more challenging than we expected."

"While Old Navy and Banana Republic are performing well, we are working aggressively to ensure our entire portfolio of brands delivers to its potential."