How Gap's Former CEO Helped Shape Apple Retail

J. Crew's CEO Mickey Drexler, former CEO of Gap, helped Steve Jobs create the highly successful Apple Store, reveals CNBC in a new report.

"Steve became the best merchant in world," said Drexler of the former Apple CEO. "He put together the best goods. He articulated them in an extraordinary way, online and in retail stores. He designed the most beautiful stores in the world."

Both Jobs and Drexler shared a desire to control their product from conception to sale. It was for this reason that Jobs likely appointed Drexler to the Apple board in 1999. In Walter Isaacson's biography of Jobs, Drexler recounts, "I couldn't stand not controlling my own product, from how it's manufactured to how it's sold. Steve is just that way, which is why I think he recruited me."


Their relationship grew when Jobs joined the board of Gap later that year. Under Dexler Gap had grown from a $400 million business to a $14 billion one but unfortunately it grew too big, too fast, and profits took a dive. Drexler was fired in May 2002 but not before Jobs called him the night before to warn him.

"He was so empathetic with me when I got fired, 'cause he was on the Gap board," Drexler recalled. "And … he said, 'It happened to me. I feel badly for you.'"

Drexler stayed on Apple's board to help Jobs create the now famous Apple Store and also became the CEO of J. Crew. His opinion was important in Steve Jobs' hiring on Ron Johnson (former SVP Retail) and the creation of a prototype Apple Store.

Johnson recalls Drexler's argument. "You've got to do a mockup, because you have to feel a store. You know, it's not like a product that you design; you've got to feel the space." And he said, 'It's the best investment you'll ever make.' And we did a mockup. And he was exactly right."


According to Isaacson the store became a haven where Jobs could come up with innovations by touching and seeing the options as they evolved. "I loved to wander over there on my own, just checking it out," Jobs told Isaacson.

CNBC is airing a special entitled J. Crew & the Man Who Dressed America which takes a closer look at Mickey Drexler on May 24th 10pm PST.

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