Powell: Apple's retail miracle

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Powell: Apple's retail miracle

A few years ago, Apple lured Ron Johnson, a successful executive from Target, to start up its retail operations. He was wildly successful. Then he left Apple to become CEO of JC Penney, an American clothing retailer. He was not successful. In fact, Penney's not only fired him, they ran advertisements apologising to customers for everything he'd done and begging them to come back.

That’s got to look great on a CV.

Meanwhile, Apple lured John Browett, an executive who had been successful at Dixon's (a discount electronics chain) and Tesco (a supermarket) to replace Johnson as head of Apple Retail. Six months later he was fired and Apple began quietly reversing the changes he had made. His career with Apple was only slightly longer than that of the iPad 3.

The lesson to be learned here is that Apple Retail is not like other retail, and what is successful in one may not work in the other. It’s a lesson Johnson and Browett have learned at great personal cost — but others can find an easier way.

Apple has not yet appointed a replacement for Browett as head of its retail operations, but is reportedly scouring the world for suitable candidates. I hear Ron Johnson is available, but ... well ... let’s just say there’s history. If you’re contemplating throwing your hat in, here’s a few pointers to help you make sure you’re not trying to run the wrong type of store.

• If there is a picture of a piece of fruit at the front of the store, it’s a supermarket. If there’s a bite taken out of the piece of fruit, it’s not.

• If there are piles of product stacked from the floor to high up near the ceiling with signs saying things like “Bargain!” and “Reduced!” you could be in many places — but you are not in an Apple Store.

• If the products you sell have a date printed on them indicating when you should cease using them and buy a new one, you’re most likely in a supermarket. In an Apple Store, they don’t print the date.

• If your customers wander about the store feeling the products and saying things like “this is so sexy” and “it will go perfectly with the one I have at home” you could be in a JC Penney, or you could be in an Apple Store. If they’re trying to decide which colour suits their eyes best, perhaps it’s a JC Penney. Unless they’re buying iPods. This isn’t easy.

• If there are people queued up for days outside the store, sleeping in the street to be the first through the door in order that they might be able to get a t-shirt, you’re most likely in ... an Apple Store. Yeah, that was a trick question. I don’t understand either.

• If there are rooms out the back where people go and take their clothes off, it’s most likely a JC Penney. Or maybe it isn’t — honestly, I don’t know what goes on out the back of an Apple Store. Could be all sorts of debauchery, but I try not to be judgmental.

I think I’m starting to get how this can be confusing.

 

Matthew JC. Powell is not throwing his own hat in the ring, mainly because it’s a really nice hat and he’d miss it. Share stories of your favourite hats on mjcp@me.com

 

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