Gap separates US and international stores into separate divisions

Gap says it will separate the domestic and international operations in an effort to boost its sagging sales.

Company CEO Millard Drexler will run the Gap chain in the US until a new president is found.

Ken Pilot, formerly head of the Gap brand worldwide, will continue to oversee the Gap's international stores.

The Gap has 4,179 stores, including 665 in Britain, France, Germany, Japan and Canada.

Besides its flagship Gap chain, the company also owns Old Navy and Banana Republic.

The shift comes as the San Francisco-based Gap tries to recapture the fashion sense that helped make it one of the most successful retailers of the 1990s.

Sales have been steadily declining during most of the two years the company operated the US and international chains as a single organisation.

"Gap faces challenges and opportunities in our US and international markets that demand different management skills and levels of attention," Mr Drexler said.

"Separate divisions and leadership teams will help us manage Gap brand more effectively."