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Apple's search for a new retail head inches forward
For about eight months now, the position of Senior VP of Retail at Apple has remained vacant. Back in October 2012, Apple unceremoniously dismissed John Browett from the position after just seven months on the job. Reports at the time indicated that Browett never quite meshed with the culture at Apple and his efforts to focus more on the bottom line than on customer satisfaction were never well received. Discussing his time at Apple this past March, Browett remarked: Apple is a truly fantastic business. The people are great; they've got great products; it's got a great culture and I loved working there; it's a fantastic business. The issue there was that I just didn't fit within the way they run the business. It was one of those things where you're rejected for fit rather than competency. So while Apple retail stores continue to rake in more money per square foot than any other store on the planet, the company is still actively looking for someone to take Apple retail to even greater heights. According to a recent report in the Wall Street Journal, Apple's search for a new Senior VP of Retail is moving along ever so slowly. Apple's search for a replacement, handled by recruiters Egon Zehnder International, has gone slowly, people familiar with the matter said, and the company has yet to settle on a finalist after interviewing several external candidates. Among those interviewed but rejected as a poor fit were wireless and telecommunications-industry executives, one such person said. A CEO of a privately held retailer in France spurned Apple's overtures, believing it would be hard to change Apple's culture as an outsider, another person said. Interestingly enough, the report relays that Apple isn't considering internal candidates for the position. This of course aligns with reports we previously saw back when Apple was searching for its first replacement for Ron Johnson, namely that Apple is on the lookout for candidates with significant international retail experience.
John Browett comments on his time at Apple
John Browett worked briefly as Apple's head-of-retail, and recently shared some of his experiences at the Retail Week Live conference. Among other things, Browett confessed that he "just didn't fit" at Apple, while praising the company itself: "Apple is a truly fantastic business. The people are great; they've got great products; it's got a great culture and I loved working there; it's a fantastic business. The issue there was that I just didn't fit within the way they run the business. It was one of those things where you're rejected for fit rather than competency." Browett made waves at Apple after attempting to make retail staffing cuts. When that move became public, Browett rescinded and addressed Apple retail employees. Browett was eventually let go in the same swoop that also saw Scott Forstall's departure. The Retail Week interview is interesting, as it provides insight into Browett's brief experience.
Apple's hunt for a new retail chief continues
Remember when Apple fired retail head John Browett at the end of October? Well, his job is still open in the company, and as AllThingsD's John Paczkowski notes, Apple may be taking its time to replace Browett because they can't afford to make another mistake hiring a senior VP for this critical position. The retail stores are a key to Apple's success; in the fourth quarter alone, the 390 worldwide Apple Stores generated an average of $6,050 per square foot. That's huge -- Tiffany & Company stores only earn about half that amount. Paczkowski's article lists five candidates whose names have been bandied about, including Burberry CEO Angela Ahrendts, Victor Luis of Coach, Jeanne Jackson of Nike, John Culver of Starbucks (China and Asia Pacific) and Paul Gainer, executive VP of Global Disney Store. They're all definitely qualified, but it's entirely possible that one of three internal candidates would fit the bill much better. Steve Cano is Apple's manager of retail stores; Bob Bridger is the current VP for retail real estate and development; and Jerry McDougal is the existing VP of retail. Many industry sources who talked with Paczkowski seem to think that Cano is the best Apple-internal candidate. He started as the manager of Apple's first Soho store, saw the Tokyo Ginza store through its opening, transferred to London to head international retail operations and is now head of all Apple Stores. Unlike Browett, he understands the culture at the stores. The man Browett replaced, JCPenney CEO Ron Johnson, says that "I think Tim (Cook) will take his time with this. The internal team is very strong and capable of running well until he finds the right person."
Apple retail exec John Browett's departure not surprising
When the first wave of news was breaking about Apple and its executive shuffle, the initial focus was on Scott Forstall leaving even though that's not actually happening until 2013. According to the Wall Street Journal, both Forstall and John Browett, Apple's vice president of retail, were asked to leave with Browett's departure an immediate one. Perhaps the reason this didn't get more initial attention is because it was hardly surprising. First, he came to Cupertino with a less-than-stellar résumé. Previously, he had been CEO of Dixons, a UK retail electronics company not known for excellent customer service. To put it mildly, he was considered a surprising choice, particularly by those who'd actually shopped at Dixons. Once he settled in at Apple, he promptly ignored advice about staffing levels and started making staffing cuts and other changes to turn Apple retail into the same sort of suboptimal experience people can have at any number of other places. When word got out that Browett was attempting to strip Apple retail of its Apple-ness, the staffing order was rescinded. This adds a bit of retroactive speculation about why the Annual Retail Conference was cancelled on such short notice. Did the head of retail cancel it as part of his quest for cost-cutting? Or was it killed because of bonus product announcements last week? Or was it because the head of retail wouldn't be there since he was back in California cleaning out his desk? We will probably never know. What's telling is that recruiting someone to head up retail will take time, and Apple would rather let the retail division spend some -- or all -- of the holiday season without a leader than let it go on under Browett.
Apple executive shakeup: Scott Forstall and John Browett are leaving the company
Huge news out of Apple today, as its senior vice president of iOS software, Scott Forstall, will leave the company next year after putting in some 15 years. Furthermore, John Browett -- head of Apple retail -- is also on his way out. The memo was delivered late today, on a day that is littered with other news that the company may hope will bury the bulk of it -- and, on a day where trading on the New York Stock Exchange is halted due to Hurricane Sandy. It's practically a given that Forstall is taking the brunt of the impact from its decision to forge ahead with an obviously subpar Maps application, all while trumpeting it as one of the pillars of iOS 6 during his keynote speech at WWDC 2012. The introduction of Siri as a beta product is also on Forstall, and we all know what happens to executives who flub something related to iPhone.... As the shakeup unfolds, Jony Ive, Bob Mansfield, Eddy Cue and Craig Federighi will add more responsibilities to their roles. In other words, Tim Cook isn't about to usher in new help who may thwart the company's efforts to continue at its breakneck pace. Curiously, Mansfield will be heaping more on his own plate just months after he had originally planned to retire. As for Ive? He'll be responsible for providing "leadership and direction for Human Interface (HI) across the company in addition to his role as the leader of Industrial Design." Eddy Cue will be gifted burdened with Siri and Maps, while also keeping an eye on the iTunes Store, the App Store, the iBookstore and iCloud. Needless to say, he probably won't be seeing too many walls outside of Cupertino for the foreseeable future. Federighi is being tasked to lead both iOS and OS X, while Mansfield chairs a new Technologies group that bundles Apple's wireless teams across the company. (Of note, Dan Riccio -- who was scheduled to take over for Mansfield prior to his retirement retraction -- isn't among those who are gaining duties.) Just months after Browett was brought in from Dixons in order to lead up Apple's retail efforts, he's on the outs as well. Of course, he's also responsible for the branch having to tell stores that it "messed up" when he fiddled with staffing levels back in August. A search for a new head of Retail is underway and in the interim, the Retail team will report directly to CEO Tim Cook. Update: The Wall Street Journal is reporting that Forstall was asked to resign after refusing to sign his own name to Apple's Maps apology, leaving Tim Cook to sign his name instead. Yikes. %Gallery-169590%
Apple brings Specialists online in four countries, lets us ask questions before we buy
Apple's latest tweak to its online store has now included a real-life genius Specialist that you can chat to if you're undecided about buying your next iPhone or iPad. If you're based in the UK, Germany, Spain or Brazil, you can surf to either product page, and an "Ask Now" button in the top right corner will offer you a choice of a phone-chat, instant messaging or a guided tour. The staffers can even help set up your newest handset once you've purchased it -- or just let you chat to someone if you're feeling lonely. If we have a worry, it's that this might be one of John Browett's schemes to cut costs, but let's hope he isn't dreaming of a future where Cupertino's personal touch is entirely replaced with an IM chat to someone in a call center. Update: A reader took the time to point out that Geniuses are technical support reps, while Apple staffers in sales roles are more properly called Specialists. We've corrected the post to reflect that.
One year of Tim Cook as CEO of Apple
Exactly one year ago today, Tim Cook took over the leadership of Apple from Steve Jobs. CNET's Josh Lowensohn reports that his first year at the company has been a huge success. Not everyone believed that Cook, who had filled in for Jobs twice during his battle with pancreatic cancer, would keep the company on its incredible journey. When the announcement of his appointment as CEO was made, Apple's stock dropped more than $6 a share. But now the stock is up 44 percent over its value at this time in 2011 and Apple was recently named the most valuable company in the world in terms of market capitalization. During Cook's first year, the company continued to see revenue growth outpacing the rest of the industry during a worldwide recession, continues to fight patent battles against rivals in court to assure that Apple (in the words of Cook) "not become the developer for the world," and has released follow-ons to its highly successful products. However, some Wall Street analysts believe that Apple's future is bleak without the charisma of Jobs at the helm. Forrester CEO George Colony was quoted in April as saying that "Apple's momentum will carry it for 24 to 48 months, but without the arrival of a new charismatic leader it will move from being a great company to being a good company." Cook has made several mistakes. He hired John Browett to replace Ron Johnson as the head of Apple's retail operations, and Browett tried playing with staffing at some stores. That resulted in rumors that employees were going to be laid off or work fewer hours, forcing the company to publicly announce that it had been trying out a new staffing plan and had gone back to the old and trusted system. Widespread criticism of iPhone ads using celebrities and the recent "Genius" ads shown during the 2012 London Olympics are considered another faux pas. On the other hand, Cook has been visible in ways that Jobs would never have been. He visited Foxconn plants during criticism of the way that the manufacturer treated its employees. He created a matching charitable donation plan for employees, and set up better employee discounts for Apple products. He even made a personal donation of $100 million to the Stanford (CA) hospitals and PROJECT (RED), while Jobs wasn't known as a philanthropist. The long-term future of Apple cannot be foretold, but after the first year of Tim Cook at the helm, it looks like the company is doing just fine. Be sure to read TUAW blogger Michael Grothaus's post from last year talking about his personal experiences with Cook.
Apple retail chiefs refute layoffs, address employees
Apple's new retail chief, John Browett, told leadership teams in Apple Stores that the mothership (not his words) "messed up" (his words). In a rare gaffe, Browett's team apparently tried what Dow Jones Newswires says were new staffing formulas. This led to shifts being cut and general pandemonium among some retail employees (and a lot of bloggers), but no layoffs as some reported. The pandemonium wasn't really that palpable, but Apple is reversing course and going back to its former staffing plans. The company also assured employees it is hiring. With a new iPhone and possibly new iPad on the near horizon, coupled with the holidays not that far off, Apple is going to need all hands on deck. Some excellent color commentary by Jim Dalrymple here.
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.
Dixons Retail CEO John Browett will become Apple's new SVP of retail
Apple announced on Monday that John Browett will join the company as its new Senior Vice President of Retail. Browett will replace Ron Johnson, who left Apple last year to become the CEO of retailer JC Penney. Browett will leave his current position as CEO of British electronics retailer Dixons to join Apple in April. Browett will be responsible for Apple's retail strategy going forward and will oversee the company's global expansion in the retail sector. Apple currently operates 361 stores around the world and has seen phenomenal growth over the last year. Apple's average revenue per retail store was US$17.1 million during Q4 2011, which was a 43 percent increase from $12.1 million a year ago. Apple stores also had 110 million visitors in 2011. Thanks to Daniel Cooper for the heads-up. Show full PR text John Browett Joins Apple as Senior Vice President of Retail CUPERTINO, California-January 30, 2012-Apple® today announced that John Browett will join the company as senior vice president of Retail, reporting to Apple CEO Tim Cook. Browett comes to Apple from European technology retailer Dixons Retail, where he has been CEO since 2007. Beginning in April, he will be responsible for Apple's retail strategy and the continued expansion of Apple retail stores around the world. "Our retail stores are all about customer service, and John shares that commitment like no one else we've met," said Tim Cook, Apple's CEO. "We are thrilled to have him join our team and bring his incredible retail experience to Apple." Prior to joining Dixons Retail, Browett held a series of executive positions at Tesco plc including CEO of Tesco.com. Earlier in his career he advised retail and consumer goods clients at Boston Consulting Group. He holds a degree in Natural Sciences from Cambridge University and an MBA from Wharton Business School. Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.
