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Who is Angela Ahrendts?
After a search that took nearly a year, Apple yesterday announced that Burberry CEO Angela Ahrendts will be joining Apple this spring as the company's Senior VP of Retail and Online Stores. Make no mistake about it, heading up Apple's retail stores is an extremely challenging and important position. Indeed, the short tenure of former Senior VP of Retail John Browett underscores just how challenging it is to follow in the footsteps of Ron Johnson, Apple's original retail mastermind. Apple stores are well-oiled machines that together comprise the most profitable retail business in the country. The person charged with heading up this portion of Apple's business carries a lot of responsibility, which is likely why Apple took its sweet time in finding a replacement for Browett, who was unceremoniously dismissed last October. Here's an interesting fact to consider; the top retail position at Apple has been vacant for 15 of the last 22 months. So just who is Angela Ahrendts and is there any reason to think she'll be a better fit at Apple than Browett? In a word, yes. Ahrendts comes to Apple from the world of retail luxury whereas John Browett came to Apple from Dixons, a UK-based retail chain that many were quick to label as cheap and unorganized. In other words, while Ahrendts comes to Apple from the world of fashion, she undoubtedly appreciates the importance of premium branding and cultivating a top-notch shopping experience. Whereas the April 2012 hiring of Browett was greeted with skepticism, especially by those familiar with Dixons, the hiring of Ahrendts seems to be a much better choice. Even Ron Johnson heaped praise on the hire, telling Bloomberg TV that Ahrendts is a "terrific choice" who will be "exceptionally well received". On Apple's new hire, Ron Johnson tells @BloombergTV in statement she's a "terrific choice," will be "exceptionally well received" - Jon Erlichman (@JonErlichman) October 15, 2013 Over the past seven years, Ahrendts served as the CEO of Burberry where she helped revitalize the company's image and bottom line, taking it to new and more profitable heights. A native of Indiana, and a reportedly tireless worker who gets up at 4:35 am everyday, Ahrendts over the past five years helped Burberry triple its revenue while simultaneously increasing product margins. During her tenure as CEO, the share price of Burberry nearly quadrupled. One of the more interesting aspects of Ahrendts is that she was able to swiftly and effectively meld the worlds of fashion and technology. While Apple likes to talk about how it stands at the intersection of liberal arts and technology, Burberry under Ahrendts seemingly stood in a similar intersection, albeit in the fashion world. CNN reports: Burberry's Spring/Summer 2013 campaign video gained over one million YouTube views in just 48 hours. And the luxury brand now has 16 million fans on Facebook and more than two million followers on Twitter. Wander around Burberry's London flagship store on Regent Street and you'll find sales assistants armed with iPads. Meanwhile mirrors transform into screens displaying catwalk images thanks to special technology sewn into some clothing and accessories. What's more is that the actual store has been redesigned to recreate an experience that reflects the company's website, Burberry World Live. In September 2012, BrandRepublic described Burberry's Regent Street store thusly: The store's features include a 22ft-high screen, 500 hidden speakers and a hydraulic stage. It also showcases RFID microchips – radio-frequency identification – in some of its clothes. This means that when a customer wears the microchipped clothing, they can look into a mirror that transforms into a screen, which shows how the garment would look on a catwalk. There will also be a digitally enabled gallery and events space. The Wall Street Journal adds: Former colleagues say she stressed the growth of Burberry's website when other luxury brands shied away from e-commerce. She placed Apple iPads in stores, streamed Burberry fashion shows live on the company website and adopted new software to cut costs and improve profitability. "She just aggressively drove technology into every facet of the business," said Justin Cooke, Burberry's former global vice president of public relations. "She saw it as a real enabler." Also of note is that Jessica Lessin, formerly of the Wall Street Journal, was able to dig up a few interesting tidbits about Ahrendts. Apple's new retail chief Angela Ahrendts is a watch lady, say people who know her. I am certainly not implying that Apple, which is developing the iWatch, nabbed this high-profile executive because she loves watches or because one of her most recent additions to the Burberry line was a very high-end watch brand (both true). I also hear she took particular interest in the watch retailing space in Burberry stores. Let's just say her passion for watches is a coincidence. Or maybe just a plus. While this is likely nothing more than a coincidence, it's certainly worth sharing given the bevy of other rumors surrounding Apple's mythical iWatch. More so, it lends more credence to the notion that Ahrendts will fit in much better at Apple than Browett ever did. Recall that Browett a few months ago indicated that he just "didn't fit" with the way Apple runs things. "It was one of those things where you're rejected for fit rather than competency," Browett explained in March of this year. As for Ahrendts, it seems like she already espouses the Apple philosophy of premium pricing for premium products. During a 2011 interview with CNN, Ahrendts was asked about Burberry's refusal to cut prices during lean economic times. She answered: Actually just the opposite. I mean, we're doing everything we can to protect the long term sustainability of the brand. You know Burberry has been around 155 years and, no, nothing short term. Everything is for the long term. That's why these big flagship stores that we're opening up, I mean we're going from 8 to 25,000 square feet of selling space just right here in London alone with our Regent street store... When you're playing long term and you're playing the global luxury brand game, it's very different. Sound familiar? Apple has of course long been criticized for not lowering the price of its products, which typically command a premium over competing products. Most recently, Apple was criticized for not making the iPhone 5c as affordable as some analysts were hoping. Lastly, it's probably quite telling that Ahrendts will head up Apple's retail and online operations. Tim Cook noted in his email to Apple employees that he has "wanted one person to lead both of these teams for some time" but never found someone capable of doing so until he met Ahrendts. As one final point, note that Burberry has 479 stores worldwide, which is about 60 more than Apple currently has.
How Ron Johnson tried, and failed, to inject a bit of Apple culture into JC Penney
After 17 months on the job, J.C. Penney last week showed CEO Ron Johnson the door after the former Apple executive failed to turn sales around at the nationwide department store. While much of the discussion surrounding Johnson's unceremonious firing from J.C. Penney has centered on disappointing sales figures and less than stellar stock performance, the New York Times recently delved deeper into Johnson's somewhat turbulent tenure at J.C. Penney. The Times found that Johnson never quite meshed with the culture at J.C. Penney, and indeed, it appears that Johnson attempted, albeit unsuccessfully, to incorporate a bit of Apple's culture into the iconic department store. While at Apple, Johnson played an instrumental role in rolling out stores that offered premium products at premium pricing. Equally as important, the stores were inviting, hip, and appealed to a youthful demographic with money to spend. At J.C. Penney, Johnson attempted to mimic the same type of atmosphere that made Apple retail stores so successful - quality merchandise coupled with an elegant shopping experience. In doing so, Johnson sought to do away with coupons, clearance racks, and sales events. In their place, Johnson attempted to incorporate designer boutiques into J.C. Penney stores. But J.C. Penney isn't Apple, and Johnson's efforts to create an Apple-like aura and shopping experience at his new place of employ served to alienate the core group of J.C. Penney customers who flocked to those stores precisely because they were looking for discounts. The Times reports: Mr. Johnson liked to tell employees that there were two kinds of people: believers and skeptics, and at Apple, there were only believers. He wanted the same at Penney: when employees pushed back on Mr. Johnson's strategies, they got nowhere, according to several former executives. Even when Mr. Ackman urged him to meet with retail stars like J. Crew's Millard S. Drexler and Topshop's Philip Green, Mr. Johnson seemed to pay little attention to their doubts. Dreaming big and being a 'believer' certainly works well at a company where technological innovation is paramount, but that mode of operation didn't quite translate in the retail world where dreaming big often takes a back seat to cold hard sales figures. By early fall 2011, Mr. Johnson was tackling Penney's pricing, which he thought used too many discounts. He ignored a study Penney had just completed on customer preferences, and gave merchants a one-sheet grid explaining what prices they could use. "Ron's response at the time was, just like at Apple, customers don't always know what they want," said an executive who advocated testing. "We're not going to test it - we're going to roll it out." And roll it out they did, to disappointing results. J.C. Penney's demographic of cost-conscious consumers weren't pleased and they indicated as much with their pocketbooks. Somewhat predictably, sales events at the iconic department store were re-instituted this January. Another Apple approach Johnson attempted to bring over to J.C. Penney was to spare no expense when setting up in-store boutiques. Much how Apple carefully selects the type of wood and other materials it uses in its retail stores, Johnson wanted J.C. Penney's in-store boutiques to forgo cheaper options and use high quality and more expensive materials for shelving and signage. Much like Penney's stance on sales, the company has since backtracked and has asked "vendors to cover the costs for those in-store shops as it runs low on cash." On the flip side of Johnson's failure at J.C. Penney are those who believe that he wasn't given enough time to turn things around. In the tech world, a company can a release a brand new product and quickly become a major player in a market where they previously lagged behind. Things in retail move a lot more slowly, and 17 months may simply not have been enough time to properly gauge the wisdom behind many of Johnson's moves. At the end of the day, however, the bottom line is what matters and Johnson simply failed to deliver. Josh Tyrangiel of Bloomberg Businessweek posted a tweet last week which aptly sums things up. Ultimately, it appears that Johnson failed to sufficiently appreciate the difference in consumer demographics at Apple Stores compared to J.C. Penney. A telling statistic which drives the point home is that nearly 50% of the customers who shop at J.C. Penney are over 55 years of age while only 20% of them are under 35. J.C. Penney customers, on average, also have less disposable income than customers who frequent other department stores. To that end, Johnson's attempt to turn J.C. Penney into a store akin to Bloomingdales might have been doomed from the start.
Ron Johnson ousted as JC Penney CEO
One of the key aspects of Apple's resurgence under Steve Jobs was the rollout of Apple's insanely profitable retail stores. And the man spearheading Apple's efforts was Ron Johnson, a retail veteran who made a name for himself at Target. In June 2011, Johnson announced he was leaving Apple to take on the CEO position at J.C. Penney. At the time, Johnson described it as a dream job. Johnson officially assumed the role of J.C. Penney CEO in November 2011 and struggled to turn things around at the nationwide department store. Now, CNBC is reporting that Johnson has been ousted from his role as CEO. Ron Johnson is out as chief executive of the department store chain J.C. Penney, CNBC reported on Monday, citing a source. The company did not return calls for comment. The report did not say who would replace Johnson. The report notes that during his helm as CEO, shares of J.C. Penney have plummeted by 51 percent while the company's market cap dropped from $6.84 billion to $3.49 billion. While at J.C. Penney, Johnson attempted to implement the same magic that made Apple's retail stores so successful, albeit with little success. Johnson streamlined the company's brand selection and experimented with doing away with sales racks in an effort to lend an air of premium value to the J.C. Penney shopping experience. Johnson also went so far as to bring in former Apple executives Daniel Walker and Michael Kramer to help him transform J.C. Penney from a has-been department store into a premium shopping location.
'Retail Significant Stores' video highlights Apple's thoughts on retail
Apple is known for its perfectly positioned and thoughtfully designed retail stores. In an unreleased video spotted by 9to5Mac, former Apple retail chief Ron Johnson and Apple VP of Retail Development, Bob Bridger, talk about Apple's retail store philosophy. The video clip was directed by Peter Sillen and produced by Washington Square films. According to the information at Production Hub, the clip was uploaded in July 2011, which is a few months before Johnson left Apple for J.C. Penney. The five-minute promo covers some of Apple's flagship retail stores in NYC, Paris, Shanghai and more. You can view the clip below. [Via ifoAppleStore]
Apple's tepid retail growth in China
Apple may view China as its next big market, but the Cupertino company is dropping the ball when it comes to expanding its retail presence in the Asian country, says a Reuters story. Back in 2010, former head of Apple's retail division Ron Johnson predicted Apple soon would have 25 retail stores in China. The company now operates a total of five stores that are located in either Shanghai or Beijing. Reuters estimates that Apple has one store for every 215 million Chinese citizens. Not only does this create an overflow of customers into the five Apple stores, it also opens the door for a booming grey market where smuggled Apple products are sold by unauthorized re-sellers. Some peddlers don't even bother trying to get authentic Apple goods and sell cheap Chinese knock-offs that bear a striking resemblance to the real thing. The grey market has gotten so big that several copycat Apple stores have even opened in the smaller mainland cities. Poor quality products and no customer support from these grey market sellers could tarnish Apple's reputation and stifle growth in the country. This situation may not entirely be Apple's fault, however. Some of the delay may be the result of regulatory red tape which makes it difficult for Apple to open new stores at a rapid pace
John Browett added to Apple's executive profiles web page
John Browett took over for Ron Johnson as Apple's chief of retail sales last year and, now, after 13 months on the job, the former Dixon's CEO has a profile on Apple's executive webpage. According to his bio, Browett "oversees Apple's retail strategy and the continued expansion of Apple retail stores around the world." You can read Browett's full bio on Apple's website.
Ron Johnson, former Apple retail chief, rebuilding Apple staff at JC Penney
Ron Johnson left Apple as head of retail at the beginning of this month to run J.C. Penney, and apparently he's wasting no time rebuilding an Apple-style shop over there. The Wall Street Journal reports that he's aiming to bring both former Apple executives Daniel Walker and Michael Kramer on the staff there, essentially recreating part of the group that ran Apple from the year 2000 to 2005. Walker actually brought Johnson on at Apple, and it seems like the group is coming back together to do at the clothing retail company what they helped to do at Apple Inc. Of course, as Apple fans, we don't really have too much interest in the inner workings of J.C. Penney or what they're trying to do with that company. But it is interesting to think that the principles and ideas that Apple has come up with in its incredibly successful retail program are now floating out to other retail chains and industries. Going to an Apple Store is a pretty singular experience, but what if it wasn't? I'm interested to see a clothing store like J.C. Penney that's put a few of Apple retail's ideas and bits of thinking into play.
Apple retail chief Ron Johnson officially departs
Ron Johnson, Apple's Senior Vice President of Retail Operations for the last 11 years, has officially left Apple today. Back in June, Apple said that Johnson would be leaving the company on November 1st to become the CEO of J.C. Penney. Johnson joined Apple in 2000 and is largely credited with helping Apple gain a distinct retail presence. Among his contributions to Apple retail stores was the Genius Bar, which is now found in every Apple store and something Steve Jobs was initially against. Interestingly, Apple hasn't yet found a replacement for Johnson. In August the Cupertino company hired the recruiting firm Egon Zehnder International with Steve Jobs's order to find an international replacement for Johnson. As I wrote then: Apple has repeatedly said that their international expansion is a driving force in both their profits and sales. Given that China, a country which Apple had virtually no presence in until very recently, seems key to Apple's growth, its likely that Ron Johnson's replacement could very well come from the Asia Pacific territory or someone with extensive knowledge and experience in the territory. Ron Johnson's name, picture, and bio have already been removed from Executive Profiles page.
Apple reportedly hires firm to help replace former retail chief Ron Johnson
Apple has hired recruiting firm Egon Zehnder International to find a replacement for Apple Retail Chief Ron Johnson, who is leaving the company after eleven years to become the president and eventual CEO of J.C. Penney. According to the Wall Street Journal, Apple is intentionally seeking our a replacement from abroad and Egon Zehnder's services were obtained on the orders of none other than Steve Jobs. Egon Zehnder was apparently chosen because Jobs is looking for an executive with retail experience outside the US. Apple has repeatedly said that their international expansion is a driving force in both their profits and sales. Given that China, a country which Apple had virtually no presence in until very recently, seems key to Apple's growth, its likely that Ron Johnson's replacement could very well come from the Asia Pacific territory or someone with extensive knowledge and experience in the territory.
Apple retail chief Ron Johnson takes his empire-building genius to J.C. Penney
You may not know the name Ron Johnson, but you're definitely familiar with his work -- this is the man who built Apple's retail empire. Eleven years ago Jobs brought Johnson on to create the first Apple store, stealing him away from his position at Target. Now the man who brought you the Genius Bar and roaming, iPhone-wielding sales reps is moving on, and taking his expertise to the department store stalwart J.C. Penney. A spokesperson for the Cupertino crew told All Things D that the company was already searching for his replacement, but we're more interested in what Johnson will be doing with the shopping mall staple when he takes over as CEO on November 1st. We can only imagine that iPad-based virtual fitting rooms and desks of Jean-iuses will be helping you pick out your next pair of Levis. PR after the break.
Retail chief Ron Johnson leaves Apple for J.C. Penney
Apple's Senior Vice President of Retail Operations, Ron Johnson, is leaving to become President and eventually CEO of J.C. Penney. Johnson will assume this role November 1, 2011 and will join J.C. Penney's board of directors on August 1. Johnson joined Apple in 2000 from Target where he worked as the VP of merchandising. Johnson guided Apple's retail division from its inception to its current standing as one of tech's most successful brick-and-mortar stores. He was responsible for the performance of over 300 Apple stores worldwide. His departure is not a reflection of bad times at Apple. According to J.C. Penney's press release, Johnson has always dreamed of being the CEO of a major retail company. In this role, he hopes to turn around the struggling retail giant and "transform the way America shops." It's a tall order, but if he is as successful with J.C. Penney as he was with Apple, he may able to achieve the comeback of the decade. Show full PR text J. C. Penney Company Names Ron Johnson as Its Next Chief Executive Officer, Effective November 1 MYRON E. (MIKE) ULLMAN, III TO BECOME EXECUTIVE CHAIRMAN OF THE BOARD Johnson Has Led Apple Inc.'s Retail Since Its Inception Will Join J. C. Penney's Board of Directors on August 1 PLANO, Texas, June 14, 2011 /PRNewswire via COMTEX/ -- Myron E. (Mike) Ullman, III, chairman and chief executive officer of J. C. Penney Company, Inc. (NYSE: JCP), today announced that Ron Johnson, an innovative and highly regarded retail executive, has been named the Company's next chief executive officer, succeeding Mr. Ullman in that role. Mr. Johnson will assume the CEO position on Nov. 1, 2011, and report to Mr. Ullman, who will become executive chairman. Mr. Johnson will also join the Company's Board of Directors, effective Aug. 1, 2011. Mr. Johnson, 52, has served for the past 11 years as senior vice president of retail at Apple Inc., where he led its retail strategy, which from its start in 2001 now numbers over 300 stores in the U.S. and abroad. He joined Apple after 15 years at Target Corporation, where he was a key merchandising executive. Mr. Ullman said, "I am delighted that Ron is joining our Board and the Company, and look forward to working with him as we continue to transform the jcpenney brand. He is widely recognized and highly regarded in the retail industry for his creativity and innovation, his commitment to empowering employees to deliver an unparalleled customer experience, and to making stores exciting places where people love to shop. His tremendous accomplishments at Apple and Target speak to his great consumer merchandising, marketing and operational talent." Thomas J. Engibous, lead director of J. C. Penney Company's Board, said, "The Company has made outstanding strides under Mike Ullman's leadership and it has great potential ahead thanks to the Long Range Plan for growth he and the management team developed and are executing, which includes top management succession planning. The progress made under Mike's leadership is reflected in the Company's ability to attract an executive of Ron Johnson's talent and track record as it continues to focus on achieving its objective of becoming America's most exciting place to shop. We look forward to Ron joining our Board and then to his assuming the chief executive role as he, Mike and their team work towards achieving the Company's goals." Mr. Johnson said, "I've always dreamed of leading a major retail company as CEO, and I am thrilled to have the opportunity to help J. C. Penney re-imagine what I believe to be the single greatest opportunity in American retailing today, the Department Store. I have tremendous confidence in J. C. Penney's future and look forward to working with Mike Ullman, the Executive Board and the Company's 150,000 associates to transform the way America shops." As a demonstration of his confidence in J. C. Penney's long-term potential, Mr. Johnson requested and has committed to make a personal investment of $50 million in the Company through the purchase, at fair market value, of 7 1/2-year warrants on 7.257 million shares ofJ. C. Penney Company stock. The warrants cannot be sold or hedged for the first six years of their term and have a strike price of $29.92, the closing price of the stock on the business day prior to Mr. Johnson's commitment to purchase the warrants. About Ron Johnson Ron Johnson brings to J. C. Penney Company over 25 years of retail experience and a long and successful track record of delivering year-over-year growth for multi-billion dollar companies. Before joining Apple, Mr. Johnson held a variety of positions with Target Corporation, serving in his last role there as vice president of merchandising. In his 15-year merchandising career with Target he had responsibility for such categories as Men's Apparel, Women's Apparel and Accessories, Children's and Home. He is most noted for launching and leading the Design Initiative at Target, which began with the Michael Graves collection for home and included several other key brands such as Calphalon, Carr, Bodum and more. Mr. Johnson received his MBA from Harvard Business School and his Bachelor of Arts at Stanford in Economics.
A look at Apple's "all-star" executives
Tim Cook, Phil Schiller, Jony Ive, and Steve Jobs are big names at Apple. These top executives are known around the technology industry and around the world for their operational excellence, marketing know-how, design genius and powerful reality distortion fields. While these four men often get credit for much of Apple's success, the company boasts an enviable collection of talented "chiefs" and senior vice presidents who help carve its skyward path. A new gallery from CNN Money takes a brief look at eleven of Apple's all-stars. For avid fans of Apple, some of the names mentioned in CNN Money's gallery may be familiar. But if you don't recognize names like Craig Federighi, Scott Forstall, Bob Mansfield, Ron Johnson, Peter Oppenheimer, Bruce Sewell, Jeff Williams, Eddy Cue, Katie Cotton, Dr. Guy "Bud" Tribble, or Greg Joswiak, this may be a good opportunity to brush up on the men and women who help shape one of the world's most successful companies.
First Hong Kong Apple Store to open this year
The South China Morning Post reports that Apple will open its first retail store in Hong Kong later this year. The International Finance Center (IFC) Mall in the central district of Hong Kong Island will host the new 15,000 square foot location. A second Hong Kong Apple store, a 20,000 square foot shop in Hysan Place in Causeway Bay, is planned for 2012. According to the Morning Post, Apple negotiated a 10-year lease for the retail space in the IFC mall. The company will spend an estimated US$20 million to construct its first store in Hong Kong and up to $9.2 million a year on rent. An Apple spokesperson told the Morning Post the IFC store "will be similar" to Apple's high-profile retail locations in London, Paris, and Shanghai. Located near two office towers and a soon-to-open Four Seasons Hotel, The IFC mall houses approximately 200 shops representing about 100 different international brands. Hong Kong is home to about 7 million people and hosts approximately 32 million tourists a year. Apple opened its first store in China in July, 2008. The four locations in China -- two in Beijing and two in Shanghai -- each receive over 40,000 visitors a day, says Ron Johnson, senior vice president of retail operations for Apple. That is four times the traffic to Apple's stores in the rest of the world. The company plans to open a total of 20 new stores in China this year. Apple has 323 retail stores worldwide.
While store customers get Halloween patches, Apple's retail VP cleans up
File under "Awww": Children visiting the Bellevue, WA Apple Store on Halloween were treated to collectible instant-stick logo patches, says iPhone Savior. The patches ran out pretty quickly, but they were popular while they lasted. Patches are certainly nice keepsakes, but if you want to talk real holiday rewards, let's consider Apple's senior VP of retail Ron Johnson. Over the weekend, as noted by Apple 2.0, an SEC reporting form listed Johnson as selling a few stock options. To be precise, he sold 150,000 shares on Thursday, with an average selling price per share of $306.07 -- which, along with the strike price (the 'sticker price' on the shares, which are granted by Apple) of $11.06, means he cleared a cool $44 million in pretax profits. Johnson isn't a first-time seller, either; over the past three years his total profits from option sales come to about $200 million. Can't argue with the job he's doing, as Apple's retail stores continue going gangbusters quarter after quarter -- but maybe he needs a new nickname. RJ Nabisco, because he's making bread? Hmm. Needs work. image courtesy Interior Design Room
Apple's retail chief on iPhone activations
Worried that you might be spending a lot of time waiting for that shiny new iPhone 3G to be activated? Well, never fear because the nice people at the Apple Store are there to help you. Bloomberg.com interviewed Apple's retail chief, Ron Johnson, about the iPhone retail activation process. "Apple stores will handle about 30 customers at a time. While the company will make sure the activation process is quick," said Johnson about the activation time. Johnson then went on to say that Apple will spend as much time as needed to make sure that the customer is happy with their purchase. You can read the full interview on the Bloomberg website. [via MacRumors]
Apple Store redesign in the works
Apple is planning a redesign for their retail stores, modeled after the Fifth Avenue store in New York, to allow for displaying twice as many Macs and iPods, as well as 15% more 3rd party Mac software and iPod accessories. VP of retail, Ron Johnson, released a few of these details to Bloomberg, including stainless steel walls, Italian stone floors and a new dedicated iPod Bar.The first two stores to receive the upgraded design will be in Columbia, Maryland, and the Providence, Rhode Island store we reported back in January. There's no word on whether existing stores will receive the facelift, though we would wager remodels would happen (if at all) on a very discretionary basis.Thanks Marcus
