5 ms·

Apple Store Personnel Cuts Linked to Profit Goal

22 points by Cadsby 14y ago

objclxt 14y ago
The fact that it's being reported this was all John Browett's idea (the new head of retail at Apple) should come as no surprise to anyone from the UK, since before joining Apple last year he was CEO of Dixons, a struggling and highly maligned British consumer electronics store. I don't think anyone who had direct experience of shopping at companies previously run by John Browett would say his appointment by Apple was anything but a bad idea.
- cremnob 14y ago
  I agree. The retail stores aren't a profit center and Apple shouldn't treat it as one. A 22% margin for retail is nothing to sneeze at. To his credit, he did reverse the decision (or someone higher up).
  - rogerbinns 14y ago
    How about actual numbers from Asymco: Apple Store Operational Economics: http://www.asymco.com/2012/08/09/apple-store-operational-economics/ http://www.asymco.com/2012/08/09/apple-store-operational-eco... Are Apple Stores overstaffed: http://www.asymco.com/2012/08/17/are-apple-stores-overstaffed/ http://www.asymco.com/2012/08/17/are-apple-stores-overstaffe...
- huxley 14y ago
  Apple did backpedal from this very quickly and has since the article was published two days ago rescinded the order.
- Hontano 14y ago
  I forgot Browett came from Dixons. Everyone then said he would probably be disastrous for Apple. Looks like we were correct. I can't imagine him not being shown the door imminently after such a huge PR gaffe. Asymco just posted figures on staffing levels: http://www.asymco.com/2012/08/17/are-apple-stores-overstaffed/ http://www.asymco.com/2012/08/17/are-apple-stores-overstaffe...
- podperson 14y ago
  Time to spend more time with family, I think.
- mikeash 14y ago
  Given the reaction, I can only assume that Browett is now on double-secret probation and the next mistake will have him out on the street. Apple is not the sort of company that's suited to shaving pennies off the operating budget.
yock 14y ago
Everything about this seems contrary to Apple's image. Particularly, I'm struck by the comment suggesting that Apple Stores need to learn to run leaner, "even if the customer experience suffers." That's such a bizarre statement for any consumer-focused organization to say publically, especially Apple.
- _djo_ 14y ago
  The 'even if the consumer experience suffers' was added by the journalist based on their source's views, it was not sourced to Browett or Apple. Nonetheless, this was a stupid move by Browett and judging by the pace with which Apple moved to rescind it I'd guess his remaining time isn't long.
davedx 14y ago
Incredible. The one time I've been into an Apple store there wasn't anyone available to talk to about a Macbook Air I was seriously considering buying, and eventually after drooling for a while I got cold feet and wandered out of the shop... No wonder they reversed the decision!
- jonhendry 14y ago
  The ability to buy anything under $100 using your iPhone and the Apple Store app, without talking to anyone, should help with that a little, as people learn about it. Especially during the holidays. I think you can also use the app to pre-order things, so that they are ready to be picked up when you get there.
paul9290 14y ago
They need to focus on opening even more stores here in the Mid-Atlantic region (US). There are 3 Apple stores within a 40 mile radius here in MD and each one is always mobbed; hour wait or more to have your issue fixed. Their customer service at the Apple stores is a huge reason I haven't yet jumped off their bandwagon. Have a issue with your iDevice, just take it to the Apple store for an immediate fix; many times at no charge. I don't think other platforms offer this level of service no?
crazygringo 14y ago
Not loading for me, here's the Google cache: http://webcache.googleusercontent.com/search?q=cache:b80XchM7tM4J:www.ifoapplestore.com/db/2012/08/15/store-personnel-cuts-linked-to-profit-goal/&hl=en&gl=us&prmd=imvns&strip=1 http://webcache.googleusercontent.com/search?q=cache:b80XchM...
crazygringo 14y ago
From the article: "Update: Within 24 hours of this posting, a story by The Wall Street Journal stated that Browett had admitted the personnel changes were a mistake and the changes had been rescinded."
- chris_wot 14y ago
  Sounds like personnel changes aren't a mistake at all. If they changed Browett, Apple would be a far better organization!
tptacek 14y ago
(1) They rescinded this decision publicly --- a spokesperson (not Browett) conceded it was a mistake, which is ominous. (2) The Apple stores I've been to have been comically overstaffed, with badges & blue shirts sometimes outnumbering customers, despite large numbers of those customers. Many of those retail staff don't appear to be doing anything. Perhaps they need more people at the "Genius Bar" and fewer on the floor.
- samstave 14y ago
  The last time I was in the SF apple store, the "geniuses" we're too busy chatting to one another to help me. I had to loudly exclaim "is anyone here actually working" to get them to stop talking and give me service. I have had to chase them down in the past as well. I have only had one good experience at the apple store which was in the valley fair mall in San jose. The SF store has always been fairly bad.
  - evilduck 14y ago
    I hate buying anything at Apple stores. Maybe it works for some demographic besides me, but I find it to be more work to actually purchase an item there than in any other store.
  - raverbashing 14y ago
    I had two experiences at Apple Stores, both have been fairly good In one of them I managed to get good service even when the store was crowded (like Florida Mall crowded between xmas and new year). You use the iPad in the tables to join a queue, it may take some time, still it works.
- comatose_kid 14y ago
  I think the staffing levels makes a lot of sense. Apple sells above-market items with large ASPs, and service is important. Why go to the trouble of building a great retail experience, located in the most desirable real-estate in each city, if you diminish the buying experience by forcing customers to wait a long time to buy? Every Apple store I've ever been to (Silicon Valley, Toronto, Ottawa) has been crowded, new product release or not. Yet, I've never had to wait more than 5 minutes to talk to someone (not including waiting in line for a new iPhone model). Not having to wait long at an Apple store is part of a good retail experience - it's another way to strengthen our association of the Apple brand with quality (in line with their use of materials in their products, as well as their attention to packaging).

22 points by Cadsby 14y ago

The fact that it's being reported this was all John Browett's idea (the new head of retail at Apple) should come as no surprise to anyone from the UK, since before joining Apple last year he was CEO of Dixons, a struggling and highly maligned British consumer electronics store. I don't think anyone who had direct experience of shopping at companies previously run by John Browett would say his appointment by Apple was anything but a bad idea.

cremnob 14y ago
I agree. The retail stores aren't a profit center and Apple shouldn't treat it as one. A 22% margin for retail is nothing to sneeze at. To his credit, he did reverse the decision (or someone higher up).
- rogerbinns 14y ago
  How about actual numbers from Asymco: Apple Store Operational Economics: http://www.asymco.com/2012/08/09/apple-store-operational-economics/ http://www.asymco.com/2012/08/09/apple-store-operational-eco... Are Apple Stores overstaffed: http://www.asymco.com/2012/08/17/are-apple-stores-overstaffed/ http://www.asymco.com/2012/08/17/are-apple-stores-overstaffe...
huxley 14y ago
Apple did backpedal from this very quickly and has since the article was published two days ago rescinded the order.
Hontano 14y ago
I forgot Browett came from Dixons. Everyone then said he would probably be disastrous for Apple. Looks like we were correct. I can't imagine him not being shown the door imminently after such a huge PR gaffe. Asymco just posted figures on staffing levels: http://www.asymco.com/2012/08/17/are-apple-stores-overstaffed/ http://www.asymco.com/2012/08/17/are-apple-stores-overstaffe...
podperson 14y ago
Time to spend more time with family, I think.
mikeash 14y ago
Given the reaction, I can only assume that Browett is now on double-secret probation and the next mistake will have him out on the street. Apple is not the sort of company that's suited to shaving pennies off the operating budget.

yock 14y ago

Everything about this seems contrary to Apple's image. Particularly, I'm struck by the comment suggesting that Apple Stores need to learn to run leaner, "even if the customer experience suffers." That's such a bizarre statement for any consumer-focused organization to say publically, especially Apple.

_djo_ 14y ago
The 'even if the consumer experience suffers' was added by the journalist based on their source's views, it was not sourced to Browett or Apple. Nonetheless, this was a stupid move by Browett and judging by the pace with which Apple moved to rescind it I'd guess his remaining time isn't long.

davedx 14y ago

Incredible. The one time I've been into an Apple store there wasn't anyone available to talk to about a Macbook Air I was seriously considering buying, and eventually after drooling for a while I got cold feet and wandered out of the shop... No wonder they reversed the decision!

jonhendry 14y ago
The ability to buy anything under $100 using your iPhone and the Apple Store app, without talking to anyone, should help with that a little, as people learn about it. Especially during the holidays. I think you can also use the app to pre-order things, so that they are ready to be picked up when you get there.

paul9290 14y ago

They need to focus on opening even more stores here in the Mid-Atlantic region (US). There are 3 Apple stores within a 40 mile radius here in MD and each one is always mobbed; hour wait or more to have your issue fixed. Their customer service at the Apple stores is a huge reason I haven't yet jumped off their bandwagon. Have a issue with your iDevice, just take it to the Apple store for an immediate fix; many times at no charge. I don't think other platforms offer this level of service no?

crazygringo 14y ago

Not loading for me, here's the Google cache: http://webcache.googleusercontent.com/search?q=cache:b80XchM7tM4J:www.ifoapplestore.com/db/2012/08/15/store-personnel-cuts-linked-to-profit-goal/&hl=en&gl=us&prmd=imvns&strip=1 http://webcache.googleusercontent.com/search?q=cache:b80XchM...

crazygringo 14y ago

From the article: "Update: Within 24 hours of this posting, a story by The Wall Street Journal stated that Browett had admitted the personnel changes were a mistake and the changes had been rescinded."

chris_wot 14y ago
Sounds like personnel changes aren't a mistake at all. If they changed Browett, Apple would be a far better organization!

tptacek 14y ago

(1) They rescinded this decision publicly --- a spokesperson (not Browett) conceded it was a mistake, which is ominous. (2) The Apple stores I've been to have been comically overstaffed, with badges & blue shirts sometimes outnumbering customers, despite large numbers of those customers. Many of those retail staff don't appear to be doing anything. Perhaps they need more people at the "Genius Bar" and fewer on the floor.

samstave 14y ago
The last time I was in the SF apple store, the "geniuses" we're too busy chatting to one another to help me. I had to loudly exclaim "is anyone here actually working" to get them to stop talking and give me service. I have had to chase them down in the past as well. I have only had one good experience at the apple store which was in the valley fair mall in San jose. The SF store has always been fairly bad.
- evilduck 14y ago
  I hate buying anything at Apple stores. Maybe it works for some demographic besides me, but I find it to be more work to actually purchase an item there than in any other store.
- raverbashing 14y ago
  I had two experiences at Apple Stores, both have been fairly good In one of them I managed to get good service even when the store was crowded (like Florida Mall crowded between xmas and new year). You use the iPad in the tables to join a queue, it may take some time, still it works.
comatose_kid 14y ago
I think the staffing levels makes a lot of sense. Apple sells above-market items with large ASPs, and service is important. Why go to the trouble of building a great retail experience, located in the most desirable real-estate in each city, if you diminish the buying experience by forcing customers to wait a long time to buy? Every Apple store I've ever been to (Silicon Valley, Toronto, Ottawa) has been crowded, new product release or not. Yet, I've never had to wait more than 5 minutes to talk to someone (not including waiting in line for a new iPhone model). Not having to wait long at an Apple store is part of a good retail experience - it's another way to strengthen our association of the Apple brand with quality (in line with their use of materials in their products, as well as their attention to packaging).