Gap names new CEO

NEW YORK (CNNMoney.com) -- Gap Inc. announced Thursday that it has appointed Glenn Murphy to serve as chairman and chief executive officer of the clothing retailer which has struggled to keep up with rival chains.

Murphy will succeed Robert J. Fisher, the current chairman of the board of directors who has served as interim CEO since January of this year. Fisher will continue to serve on the board.

Shares of Gap (Charts, Fortune 500) jumped 2 percent to $17.25 in extended trading after closing down nearly 5 percent to $16.81 on the New York Stock Exchange.

Murphy, who has more than 20 years of experience in retail, is expected to start as head of the company in the next week, pending U.S. work authorization and said he intends to purchase 150,000 shares of Gap common stock.

Murphy formerly served as chairman and CEO of the largest drug store chain in Canada, Shoppers Drug Mart, for six years.

During his tenure, he lead the company through a period of growth and shareholder returns and Shopper Drug Mart reported increased revenue for 22 consecutive quarters year-over-year and its earnings per share doubled.