Gobbetti undertakes global tour of Burberry's stores

Newly appointed CEO of Burberry Marco Gobbetti is undertaking a "secretive" tour of the British luxury house's 498 stores globally to assess any changes that need to be made to revive its performance.

Gobbetti, who took over the CEO role from Christopher Bailey last month having joined at the start of the year from LVMH's Céline, is reportedly considering which stores, if any, need to be closed, according to the thisismoney.co.uk website.

Sources told the publication that Gobbetti is currently in the US, where Burberry has 74 stores, and has a reputation for being ruthless when it comes to store closures. At Céline he closed more stores than he opened and is said to be focused on ensuring each store is a true reflection of a brand's values.

Marco Gobbetti

In its latest financial statement, the business said overall revenues were down 1% to at £1,607m in the six months to 31 March while retail revenues were up 3% at £1,268m. Sales in the Americas region were said to be down in the mid single-digit percentage range as the relative strength of the dollar drove an increase in business from US customers abroad but a decline in the domestic market. Burberry had also cut back on promotional activity in the market to improve brand perception.

The business is in the midst of a restructuring which includes the opening of a new HQ in Leeds which will result in the transfer of 300 jobs from London.

Following Gobbetti's appointment last month, Bailey, who was previously CEO and chief creative officer, moved into the new role of president and chief creative officer. Both Bailey and Gobbetti report to Burberry chairman Sir John Peace, though Peace has indicated his intention to stand down and a replacement is due to be in place by the end of next year.