Apple appoints successful Burberry head to be chief retail officer. In other retail news...Macy's will open on Thanksgiving.
Apple hires Burberry CEO as Retail Chief
Apple hired Burberry CEO, Angela Ahrendts, to heat up its retail efforts, according to the Wall Street Journal. Ahrendts will join Apple next year in the newly created position of senior vice president of retail and online stores. She will be a member of the executive team and report directly to Apple CEO, Tim Cook. Ms. Ahrendts is credited with leading a turnaround at the British fashion house, tripling sales and quadrupling share price during her tenure. Ahrendts led efforts to regain Burberry’s exclusive clientele and updated its clothing range with more subtle designs and understated offerings.
Coca-Cola profits rise due to sale of other drinks
The world’s biggest beverage maker sold more drinks in the third quarter, despite the choppy economy, causing its profits to rise. Global sales volume edged up 2 percent, according to the Associated Press. While Coke is struggling to sell more of its namesake drink at home, sales of un-carbonated beverages such as tea, juice and bottled water rose 5 percent. Overall sales rose 2 percent because the cola business was flat in the US. Soda sales, however, are growing in emerging markets with growth of 22 percent in India and 8 percent in China. The company earned $2.45 billion for the quarter, or 54 cents per share, up from $2.31 billion, or 50 cents per share a year ago.
No more landlines
Hurricane Sandy devastated the barrier island of Mantoloking, NJ and now Verizon is stating that it will not rebuild the landlines destroyed by the storm. Traditional telephone service will no longer be offered. The New York Times reports that Verizon indicates it is too expensive to replace Mantoloking’s traditional copper-line phone network and has instead installed Voice Link, a wireless service. The actions in Mantoloking foreshadow the future across the US. Today forty percent of households use only wireless phones and only 10 percent of households have only a landline. Verizon, AT&T and other carriers are trying to rid themselves of the cost of maintaining the vast copper-wire networks and offer wireless and fiber-optic line, even though the new services often fail during a blackout.
Airlines to squeeze in more passengers
The big US airlines are taking out old bulky seats in favor of slimline models that take up less space and allow for five or six more seats per plane. The Associated Press reports that the new seats provide the airlines with more paying passengers and reduced fuel cost due to lighter weight. The seats are roughly an inch closer together from front to back. United says the new seats make each of it A320 planes about 1200 pounds lighter. Southwest says the weight savings is saving $10 million per year in fuel costs. Seats five years ago weighed 29 pounds each. Today they weigh approximately 20 pounds.
Amazon uses P&G warehouses
Amazon.com has been quietly using Procter & Gamble warehouses as the online retailer makes a push into household products like shampoo and toilet paper, according to CNBC. The arrangement allows Amazon to cut the delivery time to consumers and to compete more effectively with WalMart, Costco and others. It is currently in seven P&G warehouses worldwide and is in talks with other companies to use their warehouses.
Macy’s to open on Thanksgiving
For the first time in 155 years, Macy’s will open its stores on Thanksgiving. USA Today reports that the stores will open at 8 pm on the holiday, four hours earlier than in previous years. Feedback from consumers on Twitter has been mostly negative. Toys R Us was the first retailer to open on Thanksgiving when it opened two years ago at 9 pm on Thanksgiving. Last year Toys R Us was joined by Target, Walmart, Sears and Kmart. Retailers believe that the earlier hours appeal to customers’ desire to shop following family gatherings.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.