Burberry’s Jonathan Akeroyd is leaving the company “by mutual agreement with the
board” – to be replaced by former Coach CEO Joshua Schulman. It’s a move that
comes as the fashion brand’s sales have declined in a “disappointing” first quarter in
core markets, including the UK.
But is Burberry throwing the baby out with the bathwater?
Data from YouGov BrandIndex does not paint a picture of a brand going backwards.
Impression scores, for example, which measure general positive or negative
sentiment , have risen from 9.9 to 12.2 (+2.3) since Akeroyd took the reins in
October 2021. While they’ve been beneath the average for most of his tenure, this
has recently turned around: the brand is, as of our latest data, more well-regarded
than the average high street fashion brand (11.3).
Similarly, perceptions of Burberry’s quality have improved over Akeroyd’s tenure:
scores for this metric have risen from 28.3 to 31.5 (+3.2), perhaps reflecting the
erstwhile CEO’s efforts to take the brand further upmarket. And while opinion of
Burberry’s Value for Money – a key consideration for many in a cost-of-living crisis –
remains negative, scores for this measure have jumped from -10.5 to -8.1 (+2.4).
Customers are also happier with Burberry than they once were. Satisfaction scores
were at 2.8 when Akeroyd took over, and they now sit at 4.6 (+1.8). There are other
improvements in terms of Consideration, which has risen from 3.2 to 4.4 (+1.2), and
Recommend scores, which have moved from 5.5 to 6.8 (+1.3).
None of these gains are seismic, but in terms of public opinion, the brand is on the
right track. The company has said that the aim for the new CEO’s tenure is to return
to “more of the timeless, classic attributes that Burberry is known for”, and it has
partially attributed its troubles to a too-quick “creative transition”. That said, market
forces have also dented the sales of other brands in the luxury space (such as
Mulberry ), and if Akeroyd’s strategy did not quite satisfy the board, it may have also
borne some fruit. Will it be allowed to ripen?