Bloomberg’s Caroline Hyde reports on the challenges awaiting Angela Ahrendts as she takes over as vice president for retail at Apple on Bloomberg Television’s “The Pulse.”
Retail sales were flat for the last quarter, [Apple’s] fiscal 2nd quarter, and, in fact, they’re getting less bang for their buck… In 2013, retail profits down 13% for retail, even though they opened 26 more stores. So what’s going on here? …The fact that you’re getting cheaper competitors and also copycatting, really, some of their styles. The airy stores with their see-through staircases that Steve Jobs brought in Ron Johnson to really push through, well, now they’ve got Asian rivals copycatting to a certain degree; the “geek chic” isn’t only being done by Apple anymore. The Genius Bars are somewhat being copied, as well, so clearly they need to do something new to get us buying in these stores.
It’s all about just getting the youth involved, bringing back the style to Apple overall. What did [Ahrendts] do so well at Burberry? She innovated. She brought social media to Burberry, to the luxury element, far quicker than… her competitors… Will she try to embrace the younger buyer once again and just bring that luxury aspect back to Apple. – Caroline Hyde
Direct link to video here.