New Burberry chief executive Jonathan Akeroyd has his sights focused on hitting £5 billion sales as he unveils his strategy to turn it into a “modern British luxury brand”.
Akeroyd, who was formerly Versace CEO, plans to “refocus on Britishness” by strengthening Burberry’s connection with British design, craft and culture.
He also plans to double sales in leather goods, shoes and women’s ready to wear and grow outerwear sales by around 50% in the medium term.
His ultimate aim is to grow accessories to more than 50% of group sales.
Burberry will also convert all its stores to its new concept by the end of its 2026 financial year and will boost store sales densities by more than 50% to £25k per sq m.
The new CEO also plans to double online sales to reach around 15% of retail sales in the medium term.
Akeroyd unveiled his strategy as the luxury brand posted rising profits and sales for its half year to 1 October.
Sales jumped 11% to £1.35 billion, with store like-for-likes up 5%, while adjusted operating profit jumped 21% to £238 million.
Akeroyd said: “Burberry has an extraordinary legacy, a unique British heritage and a very strong platform to build on. Our focus in this next phase is on growth and acceleration.
“We have a clear plan to achieve this across brand, product and distribution and a very talented designer in Daniel Lee, supported by a passionate team.
“I am confident in our ability to deliver our medium-term targets and realise our potential as the modern British luxury brand. I am excited about what we can achieve in pursuit of our long-term ambition to reach £5bn in revenue.”
Source: Retail Gazette