New Burberry CEO to judge all 498 stores in cost cutting tour

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Marco Gobbetti

Burberry’s new chief executive Marco Gobbetti is reportedly embarking on a secretive world tour to establish which sites may need axing as part of a turnaround effort.

After 37 days into the role, Gobbetti is expected to visit every shop in the brand’s nearly 500-store global estate in an attempt to determine what changes need to be made.

Although Burberry posted a three per cent rise in sales the three months to June, largely driven by strong UK and Chinese sales, the new boss has taken on the task of cutting £100 million from costs by 2019.

READ MORE: Burberry’s new CEO starts strong with Q1 growth

In his previous role at Celine, Gobbetti earned a reputation for being tough on store quality, closing more stores than he opened while in charge.

In recent years Burberry has hammered ahead with store openings to meet increasing Chinese demand.

The tour is already underway in the US where Burberry operates from 74 stores, according to This is Money.

This market was one of the least profitable for the retailer last year, with sales falling five per cent in the year to March.

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