(Image source: Burberry Plc)
The British luxury brand has seen its fortunes reverse since Angela Ahrendts left the company to join Apple.
Burberry plans to cut costs by £100m (approx $150m) by 2019. However, since the appointment of Christopher Bailey to the dual role of Chief Executive Officer and Chief Creative Officer the company has not only dropped revenues but has also seen significant cost control measures introduced. Mr Bailey is rapidly losing faith among investors, but has backing from the board, and an additional leader is being sought to work in tandem with Christopher as his duties are thought to demand too much of his time.
(Image source: Burberry Plc)
One area where the company is looking at significant cost savings is the width of their ranges. The company has one of the widest and largest ranges in the luxury sector at the moment. Rationalising the range might cut costs, but it might also lead to empty shelves may not necessarily mean that wholesale buyers order deeper.