Apple Store Personnel Cuts Linked to Profit Goal

http://www.ifoapplestore.com/db/2012/08/15/store-personnel-cuts-linked-to-profit-goal/

by Cadsby • 14 years ago

22 26 14 years ago

objclxt• 14 years 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• 14 years 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• 14 years ago

How about actual numbers from Asymco:

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-overstaffe...

huxley• 14 years ago

Apple did backpedal from this very quickly and has since the article was published two days ago rescinded the order.

Hontano• 14 years 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-overstaffe...

podperson• 14 years ago

Time to spend more time with family, I think.

mikeash• 14 years 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• 14 years 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_• 14 years 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• 14 years 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• 14 years 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• 14 years 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?

crazygringo2• 14 years ago

Not loading for me, here's the Google cache:

http://webcache.googleusercontent.com/search?q=cache:b80XchM...

crazygringo2• 14 years 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• 14 years ago

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

tptacek2• 14 years 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• 14 years 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• 14 years 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• 14 years 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• 14 years 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).

wglb2• 14 years ago

Well, yesterday in Northbrook, I had to wait 30 minutes to buy something at the apple store, so the story is credible to me.

yourapostasy• 14 years ago

Unless you need advice from a blue shirt working the floor or what you were buying is over $100, you can pay and check yourself out with the Apple Store app [1] and what they call their Easy Pay feature. I find this especially convenient when a store I go into is very crowded or I just don't want to wait. I grab what I need, scan it with the app, key in my password, and walk out usually within 5 minutes.

[1] http://itunes.apple.com/us/app/apple-store/id375380948?mt=8

luu• 14 years ago

I think (2) is on purpose. It's a fundamental result of queuing theory that if demand is 'lumpy' you have to put with either long lines or idle resources.

Most places choose long lines, but Apple seems like the sort of company to choose to have people some people idle most of the time rather than have long lines some of the time.

tptacek2• 14 years ago

As Sam points out below: it is especially aggravating if you're getting slow service while 20 blue-shirted staff are standing around doing nothing. Intellectually, I understand why that might be happening: those people don't have roles that enable them to check customers out. Emotionally, it feels like (a) nobody at the store cares, and (b) that I can't get any bead on when or who or how someone at the store is going to help me.

My general point is, I can imagine how a seasoned retail pro might tour a bunch of Apple stores and come to the conclusion that they are haphazardly and wastefully staffed.

I also buy any argument for that conclusion being wrong! I'm not a retail guy. But do note that, like many other people who will chime in on this thread, while the Apple retail experience isn't bad per se (it's much better than shopping at Best Buy), it can in reality be very annoying. They have room to improve.

smackfu• 14 years ago

Sometimes an Apple Store can get comical if you just want to go in and buy a product. A nice worker who is emphatically not willing to actually sell you anything advises how to get your name on the queue, at which point you have to stand next to that table until someone frees up from some other endless sale.

I guess that's why they introduced the "buy online and just take it and leave" model, so you don't have to deal with anyone, but it doesn't work for stuff in the back room.

Apple Store Personnel Cuts Linked to Profit Goal

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