Ahrendts’ Challenge: Restore Retail Shine to Apple

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

April 28 (Bloomberg) -- 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.”

Getting a tough gig here.

She could well be.

The euphoria of more money being given back to shareholders, a 17% increase in iphone sales, but scratch the need for service.

There are some weaknesses when it comes to the retail aspect of apple.

Retail sales were flat for the last quarter.

They are getting less bang for their buck from these gorgeous stores that they have that were really steve jobs' incarnation.

We are seeing 2013 retail profits down 13%. even though they opened 26 more stores.

What is going on here?

It seems to just be the key issue that is confronting apple in general.

The fact that you are getting cheaper competitors and copycats.

Now they have got asian rivals copycatting to a certain degree.

The geek chic isn't only being done by apple anymore.

The genius is being copied as well.

They need to do something new to get us buying in the stores.

What will be her key focus?

What does ahrendts need to achieve?

It is all about experience, online and in the store as well.

She can't control the product range.

Where will be launched sometime this year.

It is all about getting the youth involved, bringing back the style to apple.

What did she do so well at burberry?

She innovated.

She brought social media to burberry far quicker than lvmh and kering, her competitors.

She did clever things with lipstick.

You could kiss your phone and send it with a certain shade of burberry lipstick to a friend.

That is getting the young aspirational buyer interested.

They may not be able to afford burberry coats but they can afford lipstick.

Bring that luxury aspect back to apple.

Very quickly, we have info on apple later this week.

There could be a rather large bond sale happening.

They are going back to investors.

It is worth remembering that bond investors have lost money if they bought apple's original bonds last year.

Particularly if they held the longer-term debt.

Apple is going to have to pay more to lurtere back investors.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change