GAP TO INCREASE AD SPENDING

Global Marketing Chief Leaves Retailer

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SAN FRANCISCO (AdAge.com) -- The Gap Inc., grappling with both product and marketing during a two-year run of double-digit same-store sales declines, plans to increase its ad spending between 10 percent and 15 percent in the end of the year, company officials said last week.

Gap spent $235.2 million

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on advertising last year, $150 million in the second half, according to Taylor Nelson Sofres' CMR.

Meanwhile, Peter Hempel, 43, executive vice president of global marketing for Gap, left less than a month after the launch of the retailer's latest TV effort.

A Gap spokeswoman said the company at this time had no plan to bring Michael McCadden, under a one-year contract to head Old Navy marketing, back to the Gap stores.

Mr. McCadden did not return phone calls by press time.

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