The U.K. electronics chain Dixons Retail exists as 1,200 stores in 13 countries in Europe, including different brands, such as “El Giganten” in Scandinavia and “Currys” in the U.K.
Apple (AAPL) this morning said it found a replacement for retailing director Ron Johnson, who went to JC Penney (JCP) in November of last year, hiring John Browett, CEO of British retailer Dixons Retail, who will start in April.
Apple CEO Tim Cook said Browett understood Apple’s commitment to customer service in its stores “like no one else we’ve met.”
Dixon’s motto is “Bringing Life to Technology.” The firm operates over 1,200 stores in 13 countries in Europe, and has over 38,000 employees. Interestingly, Dixon’s includes on its Web site the description of a recently begun “customer plan” to try and improve the shopping experience for customers at its stores. There’s also some detail on a “strategy”for “renewal” begun under Browett, if you care to check it out.
Apple shares are up $2.57, or 0.6%, at $455.58 in early trading. Shares of Dixon’s Retail (DXNS) traded in London fell 1.23 British pounds sterling, or 7%, to 14.01 British pounds sterling in regular trading.
In a note to clients this morning, UBS’s Maynard Um writes that “we believe Mr. Browett was well regarded as the key architect to Dixons� recovery and is generally viewed as a good operator.”
Despite market declines of ~20%, Mr. Browett was able to maintain profitability through quick decisions to exit unprofitable markets as well as ongoing cost savings. More importantly, and, in our opinion, likely the “fit” with Apple, Mr. Browett executed internal changes and better shopping & advisory experiences (similar to Apple’s focus on the customer experience).
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