Apple Inc (NASDAQ:AAPL) CEO Tim Cook, after less than a year, decided as part of an executive shakeup, to remove John Browett as the head of the Apple retail division, which oversaw the Apple Stores that have developed such an envious model. Despite several well-known mistakes that Browett made which at least temporarily altered the Apple culture in dramatic ways. Those ways could have had a dramatic effect on portfolios of billionaire investors like David Tepper of Appaloosa Management LP.
Despite that, however, the Apple Inc. (AAPL) product line is continuing to develop head-of-the-class sales, as listed in a recent analysis from a firm called RetailSails. The analysis, which is conducted every year, showed that Apple Inc (NASDAQ:AAPL) improved its retail sales numbers by 7.5 percent over the previous year, to more than $6,000 per square foot of retail space, up from about $5,600 a year ago. That number, by comparison, is about twice as much as second-place company, Tiffany’s.
These numbers focus only on sales and don’t take into account the steps Browett had originally taken to cut overhead. Steps which were actually reversed in pretty short order. Browett got a lot of flak for trying to do similar things that he did when he ran Dixons in the U.K. Apple Inc (NASDAQ:AAPL) stores had seen hours cut, staffing cut and had some changes to the customer-service policies that had been implemented for a decade under former retail chief Ron Johnson – who is now trying to implement the same model at J C Penney Company Inc (NYSE:JCP). It didn’t take long before Cook stepped it, admitted the “mistake” of the changes, and reversed Browett’s mandates. And apparently, whatever damage might have been done, was mitigated.
But it does seem that Apple Inc (NASDAQ:AAPL) will be more careful to find the right person to run the retail division – someone who can identify the secrets behind Apple’s success in its stores and improve on those. Between the removal of Browett and software chief Scott Forstall, which move will more dramatically affect Apple (AAPL), either up or down? Do you see areas where the Apple Stores could improve? Would you be likely to take a position in Apple stock with someone new heading up retail, or just as long as Browett is not there? Give us your feedback about this company and where you see it going in the future.