Apple appoints new retail executive

SAN FRANCISCO - Apple Inc has named the chief executive officer of the largest UK consumer-electronics retailer as the head of its retail operations. That move ends a search lasting more than seven months for a senior executive to oversee the company's 361 stores and lead an international expansion.

John Browett will start at Apple in April as senior vice-president, the company said in a statement. The hiring marks the first outside senior-executive appointment by new Apple Chief Executive Officer Tim Cook. Browett replaces Ron Johnson, who left Apple last year to become CEO of JC Penney Co.

Browett, who had been CEO of Dixons Retail since 2007, will lead the retail business as Apple builds more stores outside the United States. Of the company's 40 new locations this year, 30 will be abroad. Apple is using the stores to fuel an expansion in China, where outlets in Shanghai, Beijing and Hong Kong are among the company's most trafficked locations. The company had 36,000 retail employees at the end of its last fiscal year.

"Our retail stores are all about customer service, and John shares that commitment like no one else we've met," said Cook, who succeeded Apple co-founder Steve Jobs as CEO in August, in the statement.

Dixon Retail said in a separate statement that Browett would be replaced by Sebastian James, who has been with the company since 2008, most recently as group operations director.

Apple, which opened its first retail outlets more than a decade ago, now generates more sales for each square foot than luxury chains such as Tiffany & Co. The stores had $6.1 billion in sales in the quarter ended Dec 31, up 59 percent from the year-earlier period.

The division has helped fuel sales of iPhones, iPads, Macs and iPods, with customers lining up for hours to buy Apple's newest devices. The so-called Genius Bar, which Johnson created, gives customers free trouble-shooting help when their gadgets fail. The service is among the reasons Apple is consistently among the top-rated in customer satisfaction.

Since Johnson announced he would be joining JC Penney in June, Apple has relied on his main deputies, including Jerry McDougal, the vice president of retail; Steve Cano, global head of store personnel; and Bob Bridger, who is in charge of choosing store locations.

In addition to its existing team, Apple has connections to the retail industry. Mickey Drexler, the chairman and CEO of J. Crew Group Inc, serves on Apple's board.

Part of Apple's strategy in expanding outside the US will be to keep putting stores in heavily trafficked areas, even if it means paying the highest real estate rents. Its stores on Fifth Avenue in New York, near the Louvre in Paris, or Regent Street in London attract hundreds of people who line up for the introductions of new iPads or iPhones.

The success can have its drawbacks. Apple faced angry crowds at one of its Beijing locations after shoppers grew restless waiting for the new iPhone. Some people threw eggs at the store.

Last week, Apple reported quarterly profit that more than doubled to $13.1 billion, boosted by record holiday sales of the iPhone, iPad and Mac. The results helped push the stock into record territory and make Apple the world's most valuable company.

Bloomberg News